Tag Archive for: Hard Money
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!
Tricks to Get Approved for a Loan
So, you keep getting turned down for a loan.
As mentioned in a previous post, there’s likely a valid reason. The most logical explanation is a lender doesn’t have the kind of loan you’re looking for. They might only offer loans that include:
- Lower LTV’s
- Shorter terms
- Smaller loan sizes
- Borrower entity requirements
- Loans for higher credit scores
- Loans for those with more experience
Even so, it gets old. So, what are some tricks can you try to avoid hearing, “No,” instead of “Yes”? Here are just a couple:
- Look for smaller banks in your area. They will charge a little more but don’t mind the churning because they have smaller buckets of money.
With that said, we recommend you always work with one or two small banks because they’ll tighten the money outflow as they fill their buckets up.
- Look for lenders who like real estate investors. How? Just ask them upfront if they work with fix and flippers before you go through the four-week process of being turned down.
Are you ready to set yourself up for success, rather than failure? Give us a call at 303.539.3000 to get the ball rolling!
Introducing the Hard Money Mike Loan Optimizer
With the Loan 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 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 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 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 it here.
Fix and Flip Escalator – A Closer Look
Let’s continue with the example we used last week and examine the Fix and Flip Escalator a little closer.
As reminder, we used the following scenario to evaluate figures:
You need a loan for $250,000. That covers purchase price and repairs. After 6 months of hard work, you fix the property and sell it for $335,000 (nice job!). Once you take into account all of your holding, closing, and realtor costs, you should walk away with $50,000.
So, now let’s see what happens when you jump from a higher step (i.e. hard money), to a lower step:
When you move from hard money to soft money, you:
- Make $12,000 more in profits.
- Drop your monthly payment by $1,100—that’s more money in your pocket!
When you move from hard money to banking, you:
- Make $17,000 more in profits.
- Drop your monthly payment by $1,500—again, more money in your pocket.
Are you following along? We hope so, because it’s pretty cool to see how much you can make when you consider the actual math.
Yeah, yeah. We know.
Math.
But it’s worth running some small numbers to see BIG results, right? If you’re ready to tackle the numbers for your project, give us a call.