Tag Archive for: Hard Money
2-Step Loan Program: Quick to Buy, Quick to Refi
2-Step Loan Program: Quick to Buy, Quick to Refi
One of the key factors to making more on your investments is working with a lender who can handle your short-term AND long-term loans. Or rather, help you quickly buy and quickly refinance a property.
Why find a 2-Step loan program?
Well, most investors don’t have the luxury of closing a deal in 30 plus days. They need to close as fast as possible, especially if they’re buying from a wholesaler with a strict deadline.
However, many investors are nervous about using non-traditional funding (like hard money) to close a deal upfront. What if they get stuck in an expensive loan for months and months? What if they can’t get approved for a long-term loan and get stuck with that expensive loan?
That’s why it’s so important to work with a lender who can handle both sides of the coin. And not just any lender, but a lender who has experience with short-term and long-term loans.
Benefits of working with experienced lenders:
When you work with an experienced lender who offers a 2-Step Loan Program, you’ll:
- Be able to quickly buy and quickly refinance a property.
- Maximize your return on credit.
- Maximize your refinance.
- Enjoy less confusion and stress.
Think of a 2-Step Loan Program like a one-stop-shop for all of your real estate loans.
Less work, less hassle, more money.
Ready to learn more? Check out our YouTube Channel, download our investor tools, or Contact us today to get the ball rolling.
BRRRR (our 2 Step) IN GRAND JUNCTION, COLORADO
$0 Money in from Investor
From close to close in less than 60 days and $0 out of pocket for purchase, rehab or closing.
This investor was able to get his hard money (short -term loan) quickly, purchase this fix and hold and rent, with $0 money down and refinance into a conventional loan in less than 60 days.
We do not see deals with this much built in equity as often as we use to but we still come across them. Great way to start your rental portfolio or to buy and 1031x up to larger multi units.
Hard Money Mike is a lender based in Colorado, lending money on all types of commercial based properties: fix and flip, land, whole tailing, and builder bridge loans.
Investor Real Estate Loans funds investor loans in single family and commercial buildings.
BRRRR Is Out, BARRRR Is In
Check out this article from Bigger Pockets! There’s a brand new, enhanced way to look at the BRRRR strategy that could save you a lot of money.
It’s called BARRR: Buy, ADVERTISE, rehab, rent, refinance, repeat.
“Consider it a much-needed addition that has the potential to save you tax dollars, perhaps allowing you to take your spouse out to that super high-end restaurant downtown…”
Read all about the BARRRR strategy here!
BEFORE AND AFTER FLIP DEAL GRAND JUNCTION, CO
BEFORE AND AFTER PHOTOS OF INVESTMENT FLIP IN GRAND JUNCTION, CO
Hard Money Mike financed this investment flip and renovated property in Colorado for one of our repeat investors. Our client did a fabulous job transforming this dated property into a beautiful home! This property not only added value to the neighborhood after rehab, but our client’s pockets as well! It’s a win win for everyone!
When you go through Hard Money Mike, you can count on a quick and easy process for rehab projects like this one located in Grand Junction, Colorado. Hard Money Mike offers a large pool of lenders to find the right fit for your project.
Hard Money Mike is a lender based in Colorado, lending money on all types of commercial based properties: fix and flip, land, whole tailing, and builder bridge loans.
Call Mike Bonn at: 303-539-3000 or email Mike@HardMoneyMike.com
Its a bidding war out there for properties
We are seeing this firsthand with a couple properties we ended up selling and the word from all of our active real estate investors. Right now there is a bidding war going on.
More Than Half of Redfin Offers Faced Bidding Wars for Second Consecutive Month in June
July 10, 2020 by Dana Anderson
54% of Redfin offers faced competition as the supply of homes for sale and mortgage rates continued to fall in June. Single-family homes and townhouses were much more likely than condos to receive multiple bids.
See the full article from Redfin here
Fix and Flip Ohio
This investor picked up this great fix and flip in Ohio using a Hard Money Mike loan.
Hard Money Mike is a lender based in Colorado lending in several states including Ohio. Hard Money Mike lends on all types of commercial based properties: fix and flip, land, whole tailing, and builder bridge loans.
Reach out to Hard Money Mike 303-539-3000
Investor Mortgage Report 6.4.2020
Thankfully, it’s looking like another great week for standard conventional mortgage rates.
So far this week, all evidence is pointing towards increasing stability and improvements on the conventional mortgage front.
- Depending on whether you pay your mortgage person points or you have them wrapped into your loan, rates fluctuate between low 3’s and low 4’s.
- We’re seeing great rates on the conforming side.
- Every week, the non-traditional loans are reappearing with increased frequency.
- Some lenders have decreased credit score requirements to 680.
- Rates are still on average above 7%, but signs are showing that they will drop soon.
- LTVs are inching higher, but not to the degree we have seen them in the past.
In short: conventional mortgage interest rates are really good. But what does that mean for you?
How do you know when it’s smart to refinance your rental (or any) property?
Let’s face it: as rates drop, the question of whether or not to refinance runs through all our minds.
Would you like to find out (without the sales pitch from your mortgage person?)
Anyone can crunch the numbers in just a few minutes with just a few items.
Yes. It involves math. But we swear it’s EASY.
For now, all you need is a piece a paper, a pen, a calculator, and your mortgage information. (You can pull this info directly from your mortgage company’s website). Then, follow these three steps:
Step 1: Locate the amount you pay monthly for principal and interest. (Ignore everything but your principal and interest (i.e. taxes and insurance).
Step 2: Locate the number of months remaining on your loan.
Step 3: Multiply your monthly payment by the number of months you have left on your loan.
That’s it!
Let’s look at an example:
A: Your monthly principal and interest payment is $1,200.
B: You have 288 payments left on your loan.
C: $1,200.00 X 288 = $345,600
(Scary sometimes to see how much you really owe, isn’t it? Don’t panic.)
Now, let’s say that you have an opportunity to refinance and lower your interest rate with a new payment of $1,100. Should you do it?
Let’s take a look:
On your new loan, you’d pay $1,100.00 for 30 years (or 360 months). That’s $1,100.00 x 360 = $396,000.00
If you refinance, you’d increase your monthly cash flow $100.00. However, as a result, you’d pay an extra $50,400.00 over the life of your loan!
So, is the extra $100/month worth an extra 72 months (6 years) of mortgage payments? Does refinancing make sense for you financially? Well, that’s up to you.
Perhaps cash flow is more important at this time in your business life and paying the extra years is ok with you. That’s a decision only you can make. At least when you know all the numbers, you can make your call an educated one.
Try it on all your loans and find out what makes sense for you!
Your payments __________________ Months remaining _______________
Total remaining to be paid ___________________
Okay, we’re sure a few questions are swimming around in your head, so we’ll see if we can answer some of the most common ones upfront:
Q: “What if I’m not going to keep the property for 24 or 30 years? At what point does it make sense to refinance?”
A: That’s coming up in the next article.
Q: “What if I want to use those savings and pay down my mortgage?”
A: We’ll be addressing that in a future article as well.
Q: “What is my breakeven interest rate?”
A: There are so many paths you can go down and we’ll cover as many as we can. We’ll also provide a tool for you to run all these scenarios.
Today, it’s all about knowing your raw numbers.
Want an investor tool that can run these numbers (plus your breakeven rate and many more) in seconds? We have one in the works. Just get on our contact list, and we’ll let you know when it’s ready!
By knowing these numbers, you can save tens of thousands on each refinance.
Don’t worry if math isn’t your “thing.” If you don’t feel like doing this or worry the math might overwhelm you, we’ve got your back. Shoot us an email with your current statement and we can run them for you.
