Tag Archive for: Real estate investing

The 100% Financing Strategy Every Real Estate Investor Should Know

/in

Let’s walk through The 100% Financing Strategy Every Real Estate Investor Should Know — a method that combines your lender with other smart tools to fully fund your deals.

What Is “100% Financing,” Really?

You’ve probably heard lenders say, “We’ll cover up to 75% of the ARV.”

That sounds great… but it’s not true 100% financing.

Why? Because it usually only covers:

  • The purchase price

  • Some or all of the rehab

But what about everything else?

Let’s Look at a Real Example

Say you find a property that will be worth $200,000 after repairs.
You’re buying it for $110,000 and putting $40,000 into repairs.

That adds up to $150,000 — and yes, a lender might cover that.

But here’s what they don’t cover:

  • Closing costs (title, insurance, origination)

  • Escrow advances for rehab

  • Upfront contractor payments

  • Materials (windows, doors, appliances)

  • Holding costs (mortgage, taxes, HOA)

  • Surprise repairs or last-minute changes

  • Staging, cleaning, or listing prep

See the problem?

Even with a great loan, you still need extra funds on hand — and that’s where the credit stack comes in.

The Secret to True 100% Financing? Your Credit Stack

The 100% Financing Strategy Every Real Estate Investor Should Know isn’t just about a lender.

It’s about stacking other money tools as well as your loan, like:

  • A HELOC (home equity line of credit)

  • A business line of credit

  • Business credit cards

  • OPM (Other People’s Money)

  • A private partner

This stack fills the gaps so you can:

  • Move fast

  • Keep your projects on schedule

  • Avoid costly delays

  • Take on more deals without stress

Best of all? These tools often don’t cost you anything unless you use them.

Why Speed = Profit

Every day a deal drags, your profits shrink.
That’s why successful investors always keep funds ready.

Let’s say a contractor needs $5,000 upfront to start.
If you wait 10 days to figure it out, your project stalls.
Now it’s not a 3-month flip — it’s a 6-month flip.

That delay costs you:

  • More interest

  • More taxes

  • More stress

  • And maybe even the next great deal

But if you have your credit stack set up? You fund it, keep the job moving, and finish strong.

How to Set Up Your Own Stack

Everyone’s stack looks a little different. Here’s how to start building yours:

First, Start with your main lender

  • Hard money can fund up to 75% of the ARV

Second, Add a HELOC or line of credit

  • Use this for materials, escrows, or delays

Third, Get a business credit card

  • Great for contractors or emergency purchases

Forth, Tap into OPM or partnerships

  • Know anyone with $20K–$50K sitting idle? Give them a better return than the bank.

Finally, Keep it all ready — not running

  • These should be available, not maxed out

What Happens After the Flip?

Here’s the smart part:
When you sell the property, you pay off everything — including your credit stack.

You’re not adding more debt.
You’re just using tools temporarily to get your project across the finish line.

Let’s Recap

The 100% Financing Strategy Every Real Estate Investor Should Know comes down to this:

✅ Use a lender for the purchase and rehab
✅ Stack other tools to cover the rest
✅ Set everything up before you start
✅ Move fast, reduce stress, and stay profitable

If your money is ready, your deals will go smoother — and your profits will grow.

Ready to Build Your Stack?

We’ve helped thousands of investors set this up.
Download our free guide, grab your spot in our upcoming workshop, or reach out with questions.

Visit Hard Money Mike
Or email us at info@hardmoneymike.com

Let’s get your money lined up — so you can focus on finding great deals and making real progress.

Watch our most recent video to find out more!

Top 5 Questions to Ask Hard Money Lenders

/in

Today we are going to discuss the top 5 questions to ask hard money lenders before you get a loan. Not all hard money lenders are the same. That’s why asking the right questions before you sign is key. Whether you’re doing a flip, a BRRRR, or a bridge loan, these five questions can save you time, stress, and a whole lot of money.

1. What Are Your Total Costs?

Don’t just look at the interest rate. Lenders can make their deals sound great by hiding extra fees.

👉 Some charge low interest, like 10%, but add in:

  • 2 points (That’s 2% of the loan upfront!)

  • $1,000 in processing fees

Let’s break that down:

  • Loan Amount: $200,000

  • 2 Points: $4,000

  • Six Months of Interest at 10%: $10,000

  • Processing Fee: $1,000

  • Total: $15,000

Now compare it to another lender:

  • Interest Rate: 12%

  • No Points

  • But $4,000 in other fees

  • Six Months of Interest at 12%: $12,000

  • Total: $16,000

👉 Even with no points, the second lender costs more.

💡 Use a tool like the Loan Cost Optimizer at hardmoneymike.com to compare lenders side-by-side.

2. How Do You Decide Loan Amounts?

Lenders calculate what they’ll lend based on different values. Some use just the purchase price, others use ARV (After Repair Value).

Let’s look at two examples:

  • Purchase Price: $150,000

  • Rehab Costs: $50,000

  • ARV: $300,000

One lender might only give you 75% of the purchase price, or about $112,500.

Another lender might lend based on ARV, offering:

  • 90% of the purchase = $135,000

  • 100% of the rehab = $50,000

  • Total Loan: $185,000

👉 That’s a huge difference. Ask if they use purchase price or ARV to calculate your loan.

3. How Do You Decide Property Value?

This one’s big. Some lenders use real appraisers. Others use in-house tools or AI. The problem? They can value your property way lower than what it’s actually worth.

Example:

  • One lender values the ARV at $300,000

  • Another comes in at just $250,000

If they lend up to 75%, here’s what you’d get:

  • $300,000 ARV: Loan up to $225,000

  • $250,000 ARV: Loan up to $187,500

👉 That’s almost a $40,000 difference in your funding!

Always ask:

  • Who determines value?

  • Can I provide my own comps?

  • Can I dispute a low value?

4. Are There Prepayment Penalties?

Some lenders sneak in rules like:

  • Minimum interest guarantees

  • 3, 6, or 9-month required interest payments

Even if you pay the loan off early, you’re stuck paying interest for those months.

👉 Ask about any minimum interest periods. Make sure the loan fits your timeline.

5. How Do Draws Work?

If you’re doing a flip or a BRRRR, you’ll likely have rehab money held in escrow.

For example:

  • Rehab budget: $50,000

  • That money is held until work is done

  • You’ll get it back in draws (aka stages)

Ask:

  • How fast can I get my draw?

  • Are there fees every time I request one?

  • Do I need an inspection or lien waivers?

👉 If your contractor can’t get paid, they might walk off the job. That’s the last thing you want.

Final Thoughts

These five questions can help you find the best lender for your project:

  1. What are the total costs?

  2. How is the loan amount calculated?

  3. How do you come up with property value?

  4. Are there prepayment penalties?

  5. How do your draws and escrow work?

✨ Want help comparing lenders? Try the Loan Cost Optimizer at HardMoneyMike.com.

Watch our most recent video to find out more about: Top 5 Questions to Ask Hard Money Lenders BEFORE You Get a Loan

What’s Better for You: Hard Money or a Partnership?

/in

Today we are going to discuss what’s better for you: hard money or a partnership. Every investor runs into this question sooner or later:
Should I use hard money or bring in a partner?

Let’s break it down so you can choose what fits your deal best.

First, What’s Hard Money?

Hard money is a loan based on the property — not your personal income.
You borrow from a lender and pay interest, but you keep full control of the project.

Pros of Hard Money:

  • Fast funding. Many loans close in just a few days, which can give you an edge.

  • No partner needed. That means you get to keep 100% of the profits.

  • Flexible terms. It works well for flips or short-term projects.

Cons of Hard Money:

  • Higher rates. You’ll pay more than you would with a traditional loan.

  • Short terms. So, you’ll need to finish fast or refinance quickly.

  • More risk. If the deal goes sideways, you’re the one responsible.

Example:
Let’s say you find a flip that needs $200,000.
A hard money lender gives you $160,000 (80% of purchase), and you put in $40,000.
You make monthly interest payments. Then, when you sell the property, you keep all the profit.
In this case, hard money gave you speed, control, and full profit — but it also came with risk.

On the Other Hand, What About a Partnership?

A partnership means you team up with someone else.
Usually, they bring the money, while you bring the hustle.

Pros of a Partnership:

  • No loan required. You don’t need to qualify or make payments.

  • Shared risk. If things go wrong, you won’t shoulder it all alone.

  • Build strong connections. A great partner today could help with 10 deals tomorrow.

Cons of a Partnership:

  • Split profits. Often, you’ll walk away with only 50% — or sometimes even less.

  • Less control. You’ll need to agree on decisions, which can slow things down.

  • More communication. You’ll need to share updates and work closely together.

Example:
Let’s say that same $200,000 flip comes up.
Your partner funds the whole thing, including repairs. You do the work.
Then, you split the profits 50/50.
This works great if you don’t have the funds, but you’re willing to trade profit for opportunity.

So, Which Is Better?

Well, that depends on what you need the most.

Choose Hard Money If:

  • You want full control of your deal

  • You have the down payment and monthly payments covered

  • You believe in the deal and want to keep all the profit

Choose a Partnership If:

  • You don’t have enough cash or credit

  • You’re new and want to lower your risk

  • You’re okay sharing profits in exchange for experience

A Quick Comparison

To help you decide faster, here’s a side-by-side look:

Feature Hard Money Partnership
Profit Share 100% yours Shared
Control All yours Shared decisions
Risk All yours Shared
Cost Monthly payments No loan payments
Speed Very fast funding Depends on partner
Experience Needed Some required Can be new

Final Thoughts

At the end of the day, there’s no wrong choice — only the right fit for your deal.
Some investors use hard money to scale fast. Others build long-term success with great partners.
In fact, many smart investors use both, depending on the deal.

So before you jump in, think about your goals:
Do you want control, or would you rather share the load?
Do you have money for payments, or would a partner give you the boost you need?

Whatever you choose, take action.
Deals don’t wait, and neither should you.

Need help deciding?
We can walk you through it, run the numbers, and help you pick the smartest path forward.
Reach out today — your next deal could be one good decision away.

Contact Us Today! 

Is hard money or a partnership better for you? Contact us today to find out more!

Free Tools For You! 

We also have free tools available! Download the Loan Optimizer to compare financing options side by side!  

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success

5 Tips to Get Approved by Hard Money Lenders Fast!

/in

Today we are going to discuss the 5 tips to get approved by hard money lenders fast! Hard money loans are a great option for real estate investors who need fast funding for unique deals. Unlike traditional bank loans, hard money lenders focus on the property and exit strategy rather than personal income or credit scores. Let’s take a closer look!

1. Have a Clear Exit Strategy

Hard money lenders want to know how you plan to pay back the loan. Whether it’s flipping the property, refinancing into a long-term loan, or selling part of the land, your exit strategy must make sense.

Example: If you’re flipping a house, explain how long renovations will take and what comparable homes in the area are selling for. Show that you have a solid plan to sell quickly and at a profit.

2. Keep the Loan Term Short

Hard money loans are meant to be short-term solutions, usually between 9 to 12 months. The faster you can complete your project and pay off the loan, the better your chances of approval.

Example: If you’re subdividing land, outline a timeline for approvals, sales, and closing. A clear plan reassures lenders that they’ll get their money back quickly.

3. Show Responsible Credit Habits

Hard money lenders don’t care about your credit score, but they do look at your credit history. If you have a pattern of late payments, bankruptcies, or foreclosures, it may raise concerns.

Tip: If your score is low due to high credit usage but you always pay on time, highlight that to the lender. They’re more interested in your payment habits than the number itself.

4. Keep Your Loan-to-Value (LTV) Low

Most hard money lenders prefer an LTV under 75%. For fix-and-flip deals, they typically lend up to 75% of the After-Repair Value (ARV). The lower the risk to the lender, the faster they’ll approve your loan.

Example: If you’re purchasing a $200,000 property expected to be worth $300,000 after repairs, a hard money lender may lend you up to $225,000 (75% of ARV).

5. Move Quickly and Be Prepared

Hard money lenders work fast, but they expect you to move just as quickly. Have all required documents ready, including property details, a project timeline, and any additional funding sources.

Tip: Work with a lender who understands your local market. A lender familiar with your area can approve deals faster because they know the risks and opportunities.

Final Thoughts

Hard money loans can be a game-changer for real estate investors who need fast, flexible funding. By following these “5 Tips to Get Approved by Hard Money Lenders Fast”, you’ll increase your chances of securing the funds you need without delays.

If you’re ready to compare rates, try our Loan Cost Optimizer to find the best hard money loan for your next project! Contact us today!

Watch our most recent video to find out more!

What closing costs should you expect when buying a property?

/in ,

Today we are going to answer the question “what closing costs should you expect when buying a property?” Buying a property is exciting, but there’s one piece that often catches buyers off guard: closing costs. These are the fees and expenses you’ll pay to finalize your home purchase. Knowing how to calculate these costs upfront can save you from surprises and help you budget better.

Closing costs typically range from 2% to 5% of the purchase price. For example, if you’re buying a $200,000 home, you can expect to pay between $4,000 and $10,000 in closing fees. But what exactly makes up these costs?

Here are some common items included:

  • Lender fees: These cover things like loan origination and underwriting.
  • Title services: Fees for title searches and insurance to make sure the property is free of legal issues.
  • Appraisal: The cost of determining the property’s value.
  • Taxes and prepaid costs: Property taxes and homeowners insurance may need to be paid upfront.

It’s important to ask your lender for a Loan Estimate, which breaks down these expenses before closing. This document gives you a clear picture of what you’re paying for and ensures there are no hidden fees.

By understanding closing costs, you can prepare for your purchase with confidence. Ready to dive deeper? The full guide explains how to estimate your costs and even save money on them.

Contact Us Today! 

Is the potential property right for you? Contact us today to find out more about what closing costs should you expect when buying a property.

Free Tools For You! 

We also have free tools available! Download the Quick Deal Analyzer to see if your potential property will be a good investment.

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

Fix and Flip Investment Properties

/in ,

Today we are going to discuss fix and flip investment properties. Are you ready to turn neglected properties into profitable investments? Fix-and-flip projects can be one of the most exciting ways to grow wealth in real estate. The process is simple to understand: find a property with potential, renovate it, and sell it for a profit. But to succeed, you’ll need the right plan and funding to keep everything moving smoothly.

For example, imagine buying a home for $150,000 that just needs some cosmetic updates. After spending $30,000 on repairs like new floors, paint, and landscaping, you sell it for $220,000. That’s a $40,000 profit! However, to make this happen, you’ll need to know how to budget for purchase costs, repairs, and holding expenses.

Timing also matters. The faster you can finish a project, the quicker you can get it sold and move on to the next deal. This means having reliable contractors, staying on top of schedules, and making smart financial decisions—like securing funding upfront to avoid delays.

Fix and flip projects are great for those who enjoy creative problem-solving and hands-on work. If you’re organized and ready to take action, these investments can offer fast returns.

Stay tuned as we dive deeper into what it takes to succeed in fix-and-flip investing, from finding properties to picking the right financing options. With the right strategy, you can turn run-down properties into opportunities.

Contact Us Today! 

Are Fix and Flip investment properties right for you? Contact us today to find out more! 

Free Tools For You! 

We also have free tools available! Download the Quick Deal Analyzer to see if your potential property will be a good investment.

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

What is Transactional Funding?

/in ,

Today we are going to answer the question, “what is transactional funding?” Transactional funding is a short-term loan that helps real estate investors complete quick, back-to-back property deals. Think of it as a bridge that gets you from point A (buying) to point B (selling) without using your own cash.

Let’s look at an example

Here’s how it works: You find a property to buy (let’s call it Deal 1). At the same time, you have another buyer lined up to purchase that same property from you (Deal 2). Transactional funding steps in to cover the purchase of Deal 1 until Deal 2 closes. After Deal 2 wraps up, the funding gets paid back.
This type of funding is ideal for wholesalers or investors working on assignments where timing is everything. For example, imagine you’ve negotiated a great deal on a fixer-upper and have already lined up a flipper to buy it. Transactional funding ensures you don’t miss out on the opportunity just because you don’t have cash on hand.

What’s the best part? 

These loans don’t typically require credit checks or income verification since they’re secured by the property and paid off quickly. Just be sure all pieces of the deal are in place before moving forward.
In short, transactional funding is the ultimate tool for quick real estate flips. It keeps your deals moving and helps you maximize opportunities without tying up your own money.

Contact Us Today! 

What type of financing is right for you? Contact us today to find out more about real estate investment loans!

Free Tools For You! 

We also have free tools available! Download the Loan Optimizer to compare financing options side by side!  

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

BRRRR Homes as Investment Properties

/in ,

Today we will be discussing BRRRR homes as investment properties. Ever heard of the BRRRR method? It’s one of the smartest ways to build wealth through real estate. BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It’s like flipping houses, but instead of selling, you keep the property as a rental.

Here’s how it works:

  1. Buy: Find an undervalued property that needs some TLC.
  2. Rehab: Fix it up to make it safe, functional, and attractive for renters.
  3. Rent: Get tenants to move in and start covering your costs.
  4. Refinance: Pull cash out of the property with a loan based on its new value.
  5. Repeat: Use that cash to do it all over again.

For example, let’s say you buy a fixer-upper for $100,000. You spend $30,000 on repairs, and now it’s worth $180,000. You refinance, take out $50,000, and use that to buy your next property.

The best part? You’re building equity and cash flow at the same time. With every BRRRR deal, your portfolio grows while your tenants help pay down the loans.

It’s not always easy, but if done right, it’s a powerful strategy to grow your investments. 

Contact Us Today! 

Would you like to find out more about BRRRR homes as investment properties? Contact us today to find out more about investment properties!

Free Tools For You! 

We also have free tools available! Download the Quick Deal Analyzer to see if your potential property will be a good investment.

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

Hard Money vs. DSCR Loans: Which One Fits Your Deal?

/in

Today we are going to discuss hard money vs. DSCR loans: Which one fits your deal? If you’re a real estate investor, you’ve probably heard of both hard money loans and DSCR loans. They’re both powerful tools, but they work in different ways. Let’s break it down so you know which one fits your next deal.

Hard money loans are like a quick fix for short-term projects. Imagine you’ve found a fixer-upper that needs work before it can shine. A hard money loan gives you the cash fast, but it often comes with higher interest rates and shorter repayment terms. It’s like borrowing from that one friend who says, “Pay me back in a month, or else!”

On the other hand, DSCR loans are better for the long haul. These loans are based on your property’s income, not your personal finances. Say you’ve got a rental property bringing in steady cash every month—this loan is built for that. DSCR loans offer longer terms and more stability, making them great for rentals.

Here’s a quick example:

  • Fixing and flipping a run-down house? Hard money might be your answer.
  • Holding onto a rental that pays its way? DSCR loans can make your life easier.

Choosing the right loan depends on your goals. Short-term flip? Go hard money. Long-term rental income? Think DSCR. It’s all about matching the loan to your strategy!

Contact Us Today! 

Hard money vs. DSCR loans: Which one fits your deal? Contact us today to find out more!

Free Tools For You! 

We also have free tools available! Download the Loan Optimizer to compare financing options side by side!  

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success! 

The Importance of Finding the Best Interest Rate

/in

Today we are going to discuss the importance of finding the best interest rate. When it comes to loans, the interest rate is more than just a number, it’s the key to saving money. Even a small difference in rates can add up over time. For example, on a $200,000 loan, an interest rate of 6% versus 7% could mean saving hundreds of dollars each month. Over the life of the loan, that adds up to thousands!

Think about it this way: finding the best rate is like shopping for the best price on a car or a new TV. You wouldn’t buy the first option without checking for better deals. The same idea applies to your loan. The better the rate, the less you’ll spend overall.

But it’s not just about saving money, it’s also about reaching your financial goals faster. Lower interest rates mean smaller payments, freeing up your cash for other investments or expenses.

Take Sarah, for example. She’s an investor who found a property she loves. By shopping for the best rate, she saved $150 a month on her loan. That extra cash helped her renovate the property and increase its value.

The right interest rate can make a big difference. It’s worth the time to shop around, compare options, and get the deal that works best for you. Your wallet, and your future, will thank you.

Contact Us Today! 

What type of financing is right for you? Contact us today to find out more about real estate investment loans!

Free Tools For You! 

We also have free tools available! Download the Loan Optimizer to compare financing options side by side!  

Learn more!

Visit our YouTube channel to learn more about real estate investing and how you can get on the fast track to success!