Take Charge Tuesday: Numbers Game
On this Take Charge Tuesday, we want to talk about the numbers game.
At Hard Money Mike, we say it all the time: Real estate investing is all about the numbers.
Because, if done correctly, numbers don’t lie.
But in order to use the “correct” numbers, you have to research and evaluate your real estate deals and loans. That means using honest comps, being honest with your renovation budget, knowing your market and its going rates, and researching lenders.
When it comes to real estate lenders, we always recommend shopping around. Because every lender varies with their points, rates, and…hidden junk fees.
Yes, hidden junk fees.
There are many lenders who promise amazing rates and points, but then sneak in extra costs throughout the process. For example, some lenders will charge you to take money out of your escrow account (your escrow account is where lenders hold back funds for renovations). That’s like your bank charging you to withdraw money from your savings account.
So, we always tell clients and prospects to be careful. Ask lenders what other fees might pop up along the way so you know EXACTLY how much money your loan will cost.
Because, again, it’s all about the numbers. And you can’t take charge and claim a hefty reward if you don’t do your due diligence and research both potential properties and lenders.
Ready to take charge of your real estate investments? Great! Our team is always here to help you crunch the numbers, evaluate real estate deals, and decide if a value-add property is worth your time, energy, and money.