Tag Archive for: positive cash flow

What is a value add property

What is a Value Add Property?

If you’re a real estate investor, then it’s likely you’ve heard the term value-add property.

But what IS a value-add property?

Well, first of all, a value-add property means exactly like what it sounds like: a property that has value added to it.

Well, you add value to it by repairing it.

Think about a fix and flip or a fix and hold (aka, a rental property).

What is a Value Add Property

When you come across these pieces of real estate, you’ll quickly discover they’re not in marketable, sellable condition. They need work.

Some need A LOT of work.

So, let’s break things down a bit more.

Step one:

You buy a property that’s in some kind of disrepair…or simply outdated.

Then you spend some money to fix it up. This can be a lot of money because you have to do things like repair the roof, replace the plumbing, demo the kitchen, and other hefty tasks.

Or you only need to spend a little to tidy things up and make it appealing to future buyers or tenants. That includes replacing old carpet, adding fresh paint, and providing other cosmetic work.

Either way, you’re adding VALUE to the property.

Step two:

Once you do that, you can turn around and sell it for a profit or rent it for positive monthly cash flow.

And that’s basically it. It’s a fairly simple term to understand.

What you need to understand even more is how to evaluate a property to ensure you’re able to add value AND make a profit.

Need help with that? No problem. You can check out our other videos on our YouTube channel to learn more. Or you can directly reach out to our team for guidance and tips.

Because we’re always eager to set you on a path that helps you make the kind of money you need, to live the life you want.

Happy investing!

How to Find and Value Properties

Money Chat: How to Find Cash Flowing Properties

Money Chat: How to Find Cash Flowing Properties

During our next Money Chat, real estate expert Mike Bonn will discuss how to find cash flowing properties.

Because it’s important to understand how to invest in good, cash flowing properties before putting your hard earned money into real estate deals.

You can join other like-minded investors and ask all of your questions about finding the best deals out there.

How to Find Cash Flowing Properties

Want to join Mike’s Money Chat? Then register for FREE here.

Mike will answer common questions like:

  • How do I find properties in my area? 
  • How do I evaluate a property to make sure it’s a good investment? 
  • What resources can I use to help me out with this process?

By the end of the Money Chat, you should have a much better grasp of how to find and value your real estate investments, including fix and flips and rentals.

When: Thursday, September 23rd, 11 AM MST

Where: Virtual nationwide.

Register for free at https://my.demio.com/ref/lw8s3Krd8n4vKXqo

Can’t make it? No problem. We run free Money Chats every week to make sure you have an opportunity to listen, learn, and ask all of your questions.

Mike and the rest of the Hard Money Mike/Cash Flow Mortgage Company team looks forward to seeing you on Thursday.

If you have any questions about our weekly Money Chats, then our team is here to answer them any time.

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!

How to Find and Value a Property

Next Money Chat: How to Find and Value a Property

Next Money Chat: How to Find and Value a Property

During our next Money Chat, lending expert Mike Bonn will discuss how to find and value a property.

Because it’s important to understand how to invest in good, cash flowing properties before putting your hard earned money into real estate deals.

You can join other like-minded real estate investors and ask all of your questions to a lending expert.

How to Find and Value a Property

Want to join Mike’s Money Chat? Then register for FREE here.

Mike will answer common questions like:

  • How do I find properties in my area? 
  • How do I evaluate a property to make sure it’s a good investment? 
  • What resources can I use to help me out with this process?

By the end of the Money Chat, you should have a much better grasp of how to find and value your real estate investments, including fix and flips and rentals.

Can’t make it? No problem. We’re running a second Money Chat next week to make sure you have an opportunity to listen, learn, and ask all of your questions. 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, September 7th, 6 PM MST

OR

Thursday, September 9th, 11 AM MST

Where?

Virtual nationwide.

Register for free at https://my.demio.com/ref/lw8s3Krd8n4vKXqo

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!

Wisdom Wednesday: What's a Good Investment

Wisdom Wednesday: What’s a Good Investment

On this Wisdom Wednesday, we want to focus on what a good investment looks like.

Because, the truth is, good investments are pretty simple. It all boils down to cash flow.

Good Investment

As long as you have more cash flowing in than flowing out, your investment is a good investment. ~Robert Kiyosaki

Yep, it’s really as simple as that. This concept might seem pretty obvious to most investors. Unfortunately, we’ve seen too many clients fail to evaluate their deals in a way to ensure they generate positive cash flow.

What are some of the most common mistakes we see? Here are just a few:

Fail to shop around for the right lender.

Maybe an investor gets comfortable using the same lender over and over again, or they only call one lender and decide to go with their product. Whatever the case, when real estate investors fail to shop around for the best loan with the best rates and terms, then their cash flow can take a major (and unexpected) hit.

Use their heart more than their head.

Too many investors fall in love with a property and refuse to accept it’s not a good investment once they crunch the numbers. Remember, this is a business. You’re not buying a house for you or your family. You’re buying an asset that’s intended to make you money. So try to use logic rather instead of emotion.

Calculate bad numbers.

Real estate investing comes down to numbers. Pure and simple. But when investors use the wrong numbers, then they use the wrong math. And the wrong math means big consequences for their cash flow. Some common missteps with math include inaccurate comps, underestimated renovation budgets, and hidden lender junk fees. (If a lender promises amazing rates and terms, then it’s probably too good to be true. Ask them about additional fees after closing. For example, will they charge you to withdraw money from your escrow account?)

Those are just a few of the common mistakes new and seasoned real estate investors make. And those mistakes can make a dent in their cash flow. So, their good investment is suddenly not-so-good.

Ready to talk about your next deal to ensure it’s a good investment? Great, our team is always here to chat.

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!