Tag Archive for: Real estate investing

Money Chat Encore: How to Fund a Flip

Money Chat Encore: How to Fund a Flip

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Money Chat Encore: How to Fund a Flip

Attention real estate investors, both new and seasoned! Did you miss Tuesday’s Money Chat with lending expert, Mike Bonn?

It’s okay, because Mike will be hosting an encore Money Chat tomorrow, Thursday, September 2nd at 11 a.m.

During tomorrow’s chat, Mike will answer all of your questions on 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!

This is your chance to join other like-minded real estate investors and ask all of your questions to a lending professional.

Money Chat Encore: How to Fund a Flip

If you’d like to join Mike’s Money Chat tomorrow, then you can register for FREE here.

During the virtual call, 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…and how to pay for your properties.

Can’t make it to tomorrow’s chat? No problem. Let us know and we’ll set up more Money Chats on how to fund a flip. Or you can reach out to our team and schedule a time for one-on-one call. That way you have an opportunity to ask all of your questions on how to fund a flip (and any other value-add property).

But, better to tune in tomorrow to listen in with other like-minded investors.

When?

Tomorrow at 11 AM MST

Where?

Virtual nationwide.

Register for free at my.demio.com/ref/1j9cO1wJ3Co6QkW1

Mike and the rest of the Hard Money Mike/Cash Flow Mortgage Company team looks forward to seeing you tomorrow!

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

Happy investing!

How to Make More Money in Real Estate

How to Make More Money in Real Estate: Funding Tips

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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!

Motivational Monday: Invest Today

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Motivational Monday: Invest Today

Yes, another Monday is upon us, and you know what that means, right? Yep, time for a dose of motivation.

We think Mondays are the best days to kickstart goals. That includes all goals related to real estate investing. Because if you don’t start investing today, then you’ll wake up tomorrow and think, “Why didn’t I take the plunge yesterday?”

Motivation Monday: Invest Today

Look, we know how difficult it can be to begin something new…or something you haven’t done in a while.

Whether it’s quitting a bad habit, shedding a few pounds, or tackling new responsibilities, we completely understand how much effort it takes to make a change. We know how tough it is to get up on Monday morning and say, “I’m going to do THIS today.” Especially if “this” is telling yourself you’re going to invest today.

But we know you can do it.

Because we have to do it, too. We’re human just like you and everyone else. Therefore, we must challenge ourselves to find ways to improve and reach for the stars (yes, that sounds cheesy, but it’s the truth).

If we don’t look Monday (and every day) in the face and choose to better our lives, then our lives won’t change. And that’s never good, because when we remain stagnant too long we miss out on countless opportunities. The amazing, life-changing kind of opportunities that–although scary upfront–turn out to be the best thing that ever happened to us.

So, if you’re reading this and you’re debating taking the leap into real estate investing, then GO FOR IT! Truly. It might seem daunting and overwhelming right now, but if you don’t let yourself take risks, then you’ll never get a chance to reap the rewards.

And, remember, you can always start small. In fact, we’ve just started a new Money Chat where you can join like-minded investors to learn more about investing in fix and flips, rentals, and other value-add properties.

Our entire team believes in you. And we would love to show you how you can start investing today so you won’t regret it tomorrow.

Happy Monday and happy investing!

Money Chat Reminder: How to Fund a Flip

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Money Chat Reminder: How to Fund a Flip from a Lending Expert

Attention real estate investors, both new and seasoned! Don’t forget our next Money Chat is tomorrow with lending expert, Mike Bonn.

During Tuesday’s chat, Mike will answer all of your questions on 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!

This is your chance to join other like-minded real estate investors and ask all of your questions to a lending professional.

Money Chat Reminder: How to Fund a Flip

If you’d like to join Mike’s Money Chat tomorrow, then you can register for FREE here.

During the virtual call, 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…and how to pay for your properties.

Can’t make it to tomorrow’s chat? No problem, because we’re running another Money Chat on Thursday. That way you have an opportunity to listen, learn, and ask all of your questions on how to fund a flip (and any other value-add property).

And if you miss both Money Chat, no sweat. We’ll be hosting many more in the future. Plus, our team is always here to assist you.

So, mark your calendar!

When?

Tomorrow at 6 PM MST

Where?

Virtual nationwide.

Register for free at my.demio.com/ref/1j9cO1wJ3Co6QkW1

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!

Next Money Chat: How to Fund a Flip

Next Money Chat: How to Fund a Flip

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Next 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

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.

Can’t make it? No problem. We’re running the Money Chat twice next week to make sure you have an opportunity to listen, learn, and ask all of your questions on how to fund a flip (and any other value-add property). 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, August 31 @ 6 PM MST

OR

Thursday, September 2 @ 11 AM

Where?

Virtual nationwide.

Register for free at my.demio.com/ref/1j9cO1wJ3Co6QkW1

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!

The Cost of Credit: How Much Is Your Score Costing You?

The Cost of Credit: How Much Is Your Score Costing You?

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The Cost of Credit: How Much Is Your Score Costing You?

Do you know the cost of credit and how much your score is costing you?

Well, it could be adding 10+ years of extra payments to your life.

Yep, you heard that right. Ten or more years worth of payments! That could be as much as $500,000 you don’t need to pay, and all because you don’t have an ideal credit score.

That’s why today we’re going to dive into the impact your credit score has on your real estate deals…and your wallet.

If you don’t fit into a standard loan’s very strict (and small) box, then it can cost you dearly.

So, why does this happen?

Because there are many kinds of loans, but the ones with the best rates and terms are Conventional (aka, “standard”). If you can’t qualify for these affordable loans, then your costs jump considerably when you move to Non-QM (aka, “non-standard) loans.

Right now, in this market, the difference between a standard and a non-standard loan is 2 to 3 points.

That’s thousands of dollars. 

In the video above, we compare two investors who have different loans with different rates. Even though they both paid the same amount for a property, the outcome of what they pay might surprise you…especially when they start buying multiple properties.

Investor 1 pays a lower rate than Investor 2.

So, let’s breakdown their payments based on a loan amount of $200,000…

Every month, Investor 1 pays $954.83 for their property. Meanwhile, Investor 2 pays $1,264.14. That’s about $310 more than Investor 1 per month.

Now, let’s take that another step further:

Both investors eventually purchase 5 properties to add to their real estate portfolio. The difference in their total payments is about $1,500 per month (yikes).

If we take that number and look at what happens every year, Investor 2 will pay about $18,500 more than Investor 1. All because their credit score was too low to get a loan with affordable rates.

And here’s where you can see the biggest impact: Over the life of the loan (about 30 years), Investor 2 will pay over half a million dollars more than Investor 1.

Now you can see why your credit score matters.

How can you make sure you pay cheaper rates and qualify for standard loans? Well, check out some of our helpful tips on Youtube. Plus, our team is always here to help.

Happy investing!

Client Review: Gilberto A.

Client Review Spotlight: Gilberto A.

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Client Review Spotlight: Gilberto A.

Check out this client review from Gilberto A.

At Hard Money Mike, our number one goal is to make clients happy…and a lot of money!

We understand every real estate investor has different goals, hopes, and dreams. They also have a different story, which means they come into each loan with a different situation.

Because of that, we work hard to adapt, listen, and create a unique plan for each and every client.

In today’s client review spotlight, we take a closer look at what Gilberto A. had to say about his experience working with our team…

If you’re ready to chat about your next real estate deal, then reach out to our team. They’re eager to help you develop a plan that sets on a path to success.

Because Hard Money Mike isn’t just the place to start investing. It’s the place to start living your dreams.

Happy investing!

Low Credit Score: A Quick, Easy Solution

Low Credit Score: A Quick, Easy Solution

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Low Credit Score: A Quick, Easy Solution

Do you have a low credit score? If you do, then it’s likely making a big dent on your cash flow. Because a low score means paying higher rates. And higher rates mean less money in your pocket.

 

 

 

 

 

 

 

 

 

 

At Hard Money Mike, one of the main questions we hear from real estate investors is, “What credit score do I need to get a loan?” And when they hear the answer, many of those investors are unhappy about it.

Because they have a low score…too low for a traditional loan, at least. And traditional loans have some of the lowest interest rates available.

But, why is your credit score so low?

Well, there’s some common issues you probably already know about (ex: unpaid bills, late payments, etc.). But did you know one of the biggest issues is high credit card balances?

 

Yes, even if you pay some of your credit card off each month, as long as you maintain a high balance, then it’s going to ding your credit score.

For example, if you have a maximum credit line of $8,000, and you maintain a $6,000 balance, then creditors think you’re a high risk. Therefore, they penalize you by taking points off your credit score.

To make matters even more frustrating, many real estate investors have to use their credit cards to pay for renovations on a value-add property. Otherwise, their project might stall.

What can you do?

Well, technically, the best solution is to get a loan to pay off your credit cards.

But, if your score is too low, you won’t be able to get a loan.

AHHH!

Yeah, it can be a real conundrum. And we’ve seen it impact our clients countless times. So, here’s our suggestion:

Take your loan private.

Don’t go to a bank or another traditional lender. They will just reject your application. Instead, find someone (like Hard Money Mike) who can help you repair your credit score by setting up a private loan. That way you can:

  • Pay off your credit cards
  • Raise your score
  • Get an affordable loan AND rate

After you pay off your credit cards with a private loan, you can resume normal business. Just remember to keep your credit card balances as low as possible. In other words, don’t use more than 20-30% of your credit line. If you exceed that threshold, then quickly pay off what you can to drop it back down and protect your credit score.

Because a good credit score will lead to the best loan products. And the best loan products will produce the highest cash flow possible.

Happy investing!

Take Charge Tuesday: Numbers Game

Take Charge Tuesday: Numbers Game

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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.

Happy investing!

How To Make $250,000 with a Good Credit Score

How To Make $250,000 with a Good Credit Score

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How To Make $250,000 with a Good Credit Score

Did you know you can make $250,000 with a good credit score?

Yep, that’s right.

But, how?

Well, let’s pretend your credit score is fishing bait. If you have good bait, then you can catch something big and juicy. But if you have bad bait, then you’ll walk away from the pond with nothing but a sunburn and bug bites.

Yuck!

So, what creates a good credit score? Well, it depends on what you have in your tackle box.

A well-equipped tackle box includes:

  • Monthly bills that get paid on time
  • Credit cards with 30% (or lower) credit usage
  • And a diverse credit mix. That means you have multiple types of payments, like a house, a car, insurance, credit cards, etc.

When you have good bait in your tackle box (aka, a good credit score), then you can live the life you want. That means owning a house, a reliable car, a fat retirement account, and many–MANY–other things. The world is your oyster when you have good credit.

Because the higher your score, the lower your rates. And the lower your rates, the bigger your bank account.

In fact, if you have a 760 or higher score, then you can reel in an extra $250,000 by the time you retire.

But if you have a score under 650, then you’re going to have a tough time catching anything in life’s pond. Because lenders don’t like subpar credit scores. When they see your low score, they’ll reject your application or charge you expensive rates.

But don’t worry!

If you want to fish with the good stuff, then you just need to focus on raising your credit score. And it’s not all that hard to do so. It just takes a few quick, easy steps to boost your number. For example:

  • Pay your bills on time
  • Keep your credit usage under 30%
  • Get a loan to help you pay off your credit cards

Check out some of our other videos for credit score boosting tips.

Everyone deserves to own a shiny, well-equipped tackle box (er, credit score). If need advice or want to chat about yours, our team is here to help.

Happy investing!