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We Love Small Town Fix and Flippers

We Love Small Town Fix and Flippers

Do you flip or rent properties in a small town or a rural area?

If so, do you have a difficult time finding someone to fund your deals? Because, the truth is, a lot of hard money lenders shy away from smaller markets.

Well, guess what? We love helping small town real estate investors.

Unlike other lenders, we don’t care if loans are under $100k or if the property value is less than $100k. We can help.

Better yet, we can lend on properties without waiting for appraisals. That means we can close deals FAST. We’re talking days instead of weeks.

And our loan requirements are intended to be small town friendly, so all we ask is that the loan:

  • Be secured in first lien position.
  • Close with and through a title company.
  • Be at or under 70% of the after-repair value (not the current value).

Most of us are from small towns, too. So, we understand how frustrating it can be to find timely funding. That’s why we love to focus on small town flippers and rental owners.

So, if you have a property and want to get it funded and closed right now, our team is here to help.

Happy investing!

Hard Money is Scary

Hard Money is Scary

Hard Money is Scary!

So, you just found the perfect house to fix and flip, but the only way your bid will get accepted is if you can close within a week.

That means you need to team up with the much feared and misunderstood creature: Hard Money.

AHHHH!

You’ve heard many rumors of this being, like it’s a big, ol’ fat trap that’ll suck your bank account dry. But fear not! Hard money isn’t as scary as rumor has it, especially if you take three simple steps to protect yourself.

Ignore the rumors and do a little homework.

What is hard money? Really. Understanding this type of loan will save you tons of headaches in the future. Because those who have a scary run in with it do NOT use it correctly. They might treat it like a regular bank loan or accept the first hard money loan offered to them. Both spell trouble.

Understand the REAL costs and benefits.

If you only look at interest rates, then yeah, hard money is more expensive than bank loans. But bank loans come with other costs, like time, contingencies, and paperwork.

For example, if you’re competing against five other investors, you have the power to bid lower and still win. Because sellers of fixer uppers don’t want to deal with banks. Banks take too long to close and require appraisals and inspections. Therefore, cash buyers usually win even if they bid thousands of dollars lower than the next bid.

Learn the difference between hard money lenders.

Hard money lenders come in all shapes and sizes. It’s like buying new furniture. If you only go to one shop, then you get what you get. But if you go to multiple shops, then you can compare different styles, prices, and terms.

Hard money lenders are no different. If you only call one, then you get what you get. And that, again, spells trouble. You need to shop around so you can compare lenders and find out what they offer…and what they require. And if you come across a hard money lender who offers an interest rate that’s too good to be true, then be prepared to face the scary monster that you’ve heard about. Because junk fees might come spewing out of it.

Bottom line, turn on the lights. Hard money is only scary if you sit in the dark and hope for the best.

Happy investing!

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!

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!

Money Chat Encore: How to Fund a Flip

Money Chat Encore: How to Fund a Flip

Money Chat Encore: How to Fund a Flip

Attention real estate investors, both new and seasoned! Did you miss Tuesday’s Money Chat with lending expert, Mike Bonn?

It’s okay, because Mike will be hosting an encore Money Chat tomorrow, Thursday, September 2nd at 11 a.m.

During tomorrow’s chat, Mike will answer all of your questions on 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!

This is your chance to join other like-minded real estate investors and ask all of your questions to a lending professional.

Money Chat Encore: How to Fund a Flip

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:

  • 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…and how to pay for your properties.

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

But, better to tune in tomorrow to listen in with other like-minded investors.

When?

Tomorrow at 11 AM MST

Where?

Virtual nationwide.

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

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 Make More Money in Real Estate

How to Make More Money in Real Estate: Funding Tips

How to Make More Money in Real Estate: Funding Tips

Do you often wonder how you can make more money with your real estate investments?

Well, when it comes to investing in value-add properties (aka, rentals, fix and flips, etc.) the best way to generate positive cash flow is to focus on the numbers. 

What does that really mean?

It means taking the time to understand your funding options. Because all investors are different. They have different goals, different qualifications, and different strengths and weaknesses.

But all real estate investors also share a few similarities:

  • They’re in the business to make money.
  • They’re constantly searching for a GREAT deal.
  • And they have access to multiple lenders.

Let’s take a closer look at that last similarity, because it’s where the numbers make ALL the difference.

Real estate investors can get funding from a variety of sources. Just look at this “lending staircase”…

Did you know you have 5 different ways to get funding for your value-add deals?

You don’t have to break your back to qualify for a bank loan (the strictest lender you’ll likely come across). And you definitely don’t have to push pause on your investment dreams. You can always get started with a money partner (aka, a family member, friend, or business partner).

Money partners might be unpredictable and dip deeper into your profits than other lenders, but at least they can help you get moving. And if you get moving, you can also start building your real estate portfolio. And that’s key. Because experience will launch you up the lending staircase to other loan options.

Like hard money.

Hard money is great for closing deals FAST. We’re talking lightning speed compared to other lenders. But, it is on the pricier side. That’s why most investors should only plan on getting a hard money loan for 3-6 months. Any longer and it’ll eat away at your profits.

But the further you move up the lending staircase, the less that will happen. Hence, you’ll be able to make more money on your real estate deals, because you’ll be able to obtain cheaper loan products.

So, what’s the bottom line? Well, once again, it comes down to numbers. And those numbers come from the type of loan you use to fund your real estate properties.

Are you ready to start making more money by looking into YOUR funding options? Great! Our team is here to help.

Happy investing!

Money Chat Reminder: How to Fund a Flip

Money Chat Reminder: How to Fund a Flip from a Lending Expert

Attention real estate investors, both new and seasoned! Don’t forget our next Money Chat is tomorrow with lending expert, Mike Bonn.

During Tuesday’s chat, Mike will answer all of your questions on 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!

This is your chance to join other like-minded real estate investors and ask all of your questions to a lending professional.

Money Chat Reminder: How to Fund a Flip

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:

  • 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…and how to pay for your properties.

Can’t make it to tomorrow’s chat? No problem, because we’re running another Money Chat on Thursday. That way you have an opportunity to listen, learn, and ask all of your questions on how to fund a flip (and any other value-add property).

And if you miss both Money Chat, no sweat. We’ll be hosting many more in the future. Plus, our team is always here to assist you.

So, mark your calendar!

When?

Tomorrow at 6 PM MST

Where?

Virtual nationwide.

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

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!

Next Money Chat: How to Fund a Flip

Next Money Chat: How to Fund a Flip

Next 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

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.

Can’t make it? No problem. We’re running the Money Chat twice next week to make sure you have an opportunity to listen, learn, and ask all of your questions on how to fund a flip (and any other value-add property). 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, August 31 @ 6 PM MST

OR

Thursday, September 2 @ 11 AM

Where?

Virtual nationwide.

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

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!

What is the Difference Between Wholesale and Wholetail?

What is the Difference Between Wholesale and Wholetail?

What is the Difference Between Wholesale and Wholetail?

The difference between wholesale and wholetail is actually pretty easy to understand. It all comes down to your buyer, and what needs to be done to sell the property to that buyer.

What is Wholesaling?

With wholesaling, you need to find a heavily discounted property and sell it to someone who is also looking for a discounted property. So, usually a fix and flipper.

Unlike wholetailing, you don’t need to do ANYTHING with a wholesale property. Because you won’t own it for more than a couple of days or weeks. All you need to do is assign the contract to your buyer; or complete a double closing (buy the property, turn around, and sell it the same day).

You’re in and out FAST.

But you might not make as much as you’d make with a wholetail deal. Why? Well, let’s take a closer look at wholetailing.

What is Wholetailing?

Unlike wholesaling, you have more types of buyers with wholetailing.

  1. Fix and flipper. Just like with wholesaling, fix and flippers aren’t going to pay very much because they have to go in and completely renovate the property. They’re looking to make money, so they’re not going to pay more than what you would’ve paid, minus the assignment fee.
  2. Landlord. This buyer will pay a little more than a fix and flipper because they still have to go in and fix the property up so it’s rent-ready. But their renovations won’t be as extreme as a fix and flippers, so the purchase price can be higher.
  3. Retail consumer. These buyers are on the MLS, and they’re looking for a good deal. But they’re not looking to make a profit like a fix and flipper or landlord, so you can charge a higher purchase price. Therefore, they’re the most profitable.

Now, with retail consumers, the purchase price probably won’t be as high as comparable homes in the same neighborhood because the property will still need work. But it’s in lendable condition, so you can still make a good profit. For example, if the going rate in the neighborhood is $300,000, then you can probably charge between $250,000 to $260,000.

Other Differences

Wholetailing also differs from wholesaling because you might own the property for 3 months or longer. Why? Because if you sell to a retail buyer, that buyer might need to get an FHA loan, and FHA loans (aka, bank loans) require certain “seasoning” (meaning you have to own the property for a certain length of time before you sell it). And when you own a property for more than a few days, you’ll need to think about taking good care of it.

No, that doesn’t mean you have to fix it, but you will need to keep it in good, livable, lendable condition. So getting a vacant home insurance policy to protect it against things like fires would be a good idea. Another good idea is putting the utilities in your name to keep the heat and plumbing on, especially during the winter months when pipes freeze and burst.

Yikes!

So, there you have it. Like we said, the difference between wholesale and wholetail is pretty easy. Just think about the type of buyer and what that buyer is planning to do with the property.

Ready to talk about your cash flow options? Great, our team is here to help.

Happy investing!

How to Buy a Value-Add Property with No Money Down in 4 Steps

How to Buy a Value-Add Property with No Money Down in 4 Steps

How to Buy a Value-Add Property with No Money Down in 4 Steps

Do you know how to buy a value-add property with no money down?

Because, believe it or not, it only takes 4 steps.

Let’s take a closer look at these 4 steps:

#1: Buying discounted properties

It’s pretty rare to find a discounted property on the MLS. You’d have far better luck finding cheap deals through a wholesaler or investor-friendly realtor. And buying a discounted property is very important to making a profit. If you pay full retail value…well, you’ll make far less. In fact, you might not make any money at all.

#2: Setting up a loan properly.

When you want to buy a value-add property like a rental, then you should consider our 2-Step Process. Because it’ll save you a lot of time, money, and stress.

What is the 2-Step Process?

Well, it’s strategic funding method. The first step is buying a property with a hard money loan. The second step is turning around and quickly refinancing with a long-term loan. When you do this, you’re able to qualify for the highest loan amount possible. Plus, you have a much better chance of getting out of a hard money loan fast and into a cheaper traditional loan.

#3: Use rate and term, NOT cash out.

Take a deep breath.

And don’t panic, because we’re not going to dive deep into these hefty mortgage terms. But we are going to highlight the significant differences.

It can be really tempting to set up your loans as cash outs, because you get money at closing. But did you know when you use a cash out loan, you end up:

  • Paying higher costs
  • Taking longer to refinance out of hard money loans (which come with pricy rates)
  • Qualifying for lower loan amounts

Doesn’t sound so good anymore, does it?

So, let’s talk about the benefits of a rate and term refinance instead. With a rate and term, you:

  • Spend less money upfront
  • Refinance faster out of hard money loans. Like, months faster than a cash out refinance.
  • Enjoy lower rates

Better yet, when you use a rate and term refinance, your cash flow will multiply because you get to do more with your money when you pay less for your loans.

This is actually a simple process if you work with someone who can help you with both your hard money and long-term loans, like our sister company the Cash Flow Mortgage Company.

#4: Put $0 down by finding the right lender

The last and most important step is to find a lender who can handle 2-Step loans.

The truth is, there aren’t many real estate lenders out there who are qualified to provide both hard money and conventional loans. That’s why we do.

So if you’re ready to take your real estate investments to the next level and put less money down on your deals, then reach out to our team. We’re always eager to set you on a path the helps you make the kind of money you need to live the life you want.

Happy investing.