5 Ways to Make Money in a Volatile Market
Check out our latest Market Watch videos here: https://youtube.com/playlist?list=PLb…
The current market is going CRAZY with increasing interest rates, rising inflation, and supply chain issues. As a real estate investor, how can you prosper in these times? In this video, we share 5 ways to make money in a volatile market. Check it out! STAY CONNECTED ========================
If you want to make the most money on your real estate deals, then you need to create a solid team.
And some excellent members to add to your team are investor-friendly realtors.
But, why do realtors make such great team members for real estate investors?
Well, first of all, they have a constant pulse on the market.
They know what’s happening, where it’s happening, and how it’s happening.
Second, discounted properties also tend to fall into their laps, and they can pass those properties on to you.
Well, they should do more than put you on their MLS drip. Any realtor can do this, and nowadays, many of the properties on the MLS get listed on sites like Redfin and Zillow.
So, getting on an MLS drip won’t help investors much…especially when we’re looking for under-market properties. And under-market properties aren’t found on the MLS often. The right kind of realtor will have a lot more hustle. They’ll actually search for under market properties and then go through the numbers to decide it’s worth investing in before they present it to you.
Better yet, investor-friendly realtors connect with professionals in various industries, like bankruptcy attorneys. That way, when investment properties pop up, they’ll be one of the first to know about it. And then tell you about it, rather than making you wait to—hopefully—see it on the MLS weeks or months later.
Unfortunately, about 95% of the realtors do NOT like working with investors. Or, if they do, it’s part-time and not a high priority for them. These are usually more experienced realtors who have an established client list. They don’t really need your business to make money. They already have a system in place.
But, when you find realtors who are investor-friendly, you’ll know. You won’t be a side gig or a part-time project for them. They’ll be hungry to help you find investment properties and make a lot of money.
Many times, these are newer agents who are willing to be trained. They’ll be the ones looking for business and finding ways to make money with you, not off of you. So, rather than selling 3-5 properties a year, they want to sell an investment property every month.
Now, is it a bad idea to team up with both experienced and new realtors?
Not at all.
In fact, it’s a great idea to work with multiple realtors, because they all have different resources, experiences, and ideas. Plus, if one moves away or quits their job, you don’t need to worry about losing your main resource for finding properties. You’ll have others to fill in the gap.
If you want to create a smooth, easy system with your investment properties, then adding a realtor or two…or three…to your team is an excellent idea. Just make sure they like working with investors and are hungry to make money. The hungrier, the better for both of you!
Happy investing!
Do you know how to make money bird dogging?
So, let’s say you’re eager to start investing in real estate, but you’re not quite ready to fix and flip or BRRRR. It’s just too big of a commitment or too much of a risk. Or both.
No problem.
You can still make money in real estate with a simple, but effective method called bird dogging.
Basically, it’s driving for dollars. You hop in your car and drive around the neighborhood, city, or entire state and look for potential investment properties. You can even put on your best walking shoes and take a jaunt around your own neighborhood.
So, what does an investment property look like? Well, you should be able to tell it hasn’t been maintained. The paint is chipped, the windows are broken, the lawn overgrown, and so on. Or it’s vacant. Or there’s just something else is wrong with it that makes you think it can be sold at a discounted price.
Then, you collect information about the property. That means you can knock on the door and chat with the owner, take photos, and/or jot down the address. Once you do one or all these things, you can share it with potential buyers.
Buyers are usually wholesalers, investor-friendly realtors, flippers, or other real estate investors. They take the information you provide and follow-up with the owner to see if they’re actually interested in selling their property.
So, what are some of the biggest benefits of bird dogging?
So, there you have it! Bird dogging is something you can do whenever and wherever. Just hop in your car or put on your shoes and go exploring. Find those properties that are in disrepair and share them with buyers.
So, you’ve heard about the BRRRR method. You know it stands for Buy, Rehab, Rent, Refinance, and Repeat.
But do you know what each of these steps in the BRRRR method really mean? More importantly, do you know how to set each one up?
Because if you don’t, your success will be limited. Because you won’t be able to make as much money as you could by doing things right. Your monthly cash flow will be lower, your down payments will be higher…a lot higher…And your ability to repeat the process will much…much… slower.
So, let’s break things down, starting with the B in BRRRR.
As mentioned, the B in BRRRR stands for Buy.
But wait! Before you run out and buy the first property you find for sale, you need to know a few important—er, VERY important things. Because the B in BRRRR is one of the most crucial steps in the entire process. If you don’t buy strategically, then you might set yourself up for failure.
Under market properties are not found on the MLS. They’re usually found through wholesalers and investor-friendly realtors. And they come at a nice, discounted price.
Just taking this step will do wonders for your wallet.
But it’s not the only thing.
With BRRRR, there are two lenders involved. The first is for purchasing and renovating the property. The second is for refinancing into a cheaper, long-term loan.
For now, let’s focus on the first lender, for when you BUY the property.
Typically, this is a hard money or private lender. It’s not a bank or another traditional lender. Because those lenders usually require 10, 15, or even 20% down when you go to close. And, if you want the most bang for your buck, you should aim to put 0% down at closing. Because once you put money into a deal, it’s difficult to get it back out.
Hard money and private lenders can help you achieve this.
How? Because they let you maximize your LTV (loan-to-value) by lending up to 75% of the ARV (after repair value).
Ok, deep breath! We get it. This is starting to sound too complicated and confusing.
But trust us, it’s not. Just stick with it. You got this!
That means they will try to cover the full purchase price, plus part or all the rehab, closing, and holding costs. Basically, they will cover as much as the 75% allows so you don’t have to spend your own money.
And the less money you personally have to put into each deal, the faster you can repeat the BRRRR method. Because you’re not forced to wait until your bank account recovers to make another big down payment on another property.
Aiming for 75% of the ARV will also make a big impact on your refinance (the third R in the BRRRR method). But we’ll get to that later. Let’s stay focused on the B in BRRRR.
If you’re interested in trying the BRRRR Method, then it’s crucial you understand this first part of the process. If you buy an under-market property AND find a lender who can cover 75% of the ARV, then your success rate will be much, much higher. And your bank account will be a whole lot happier.
Happy investing!
Today, let’s talk about three big problems that cause many investors to experience BRRRR confusion.
Have you been thinking about investing in real estate using the BRRRR method? But you’ve hit a roadblock?
Unfortunately, you’re not alone.
A lot of real estate investors, both new AND seasoned, have heard about BRRRR, but haven’t used it.
Because they’re confused.
They’re confused about how to buy, rehab, rent, refinance…or all of the above.
So, to help unravel and debunk some of your confusion, let’s address some of the biggest questions we hear from our own clients about the BRRRR method.
Yes. BRRRR is real.
There’s a reason why our team created this video for you. We’ve helped many clients succeed using the BRRRR method. But, just like you, many of those clients started their journey confused. Because they didn’t understand the entire process either.
And what they did understand wasn’t always accurate or true. Because they were working with bankers, lenders, or realtors who fed them misinformation or were simply out of the BRRRR loop.
Again, yes. Absolutely.
Even in our current, competitive market, there are properties that work perfectly for the BRRRR method. The trick is to find the right area to invest in. That might mean leaving your own town, city, or even state to find properties that produce solid cash flow.
And, trust us, those areas exist.
You can start your search by talking to wholesalers, investor-friendly realtors, or even other investors to see where they’re buying properties.
Of course, searching for cash flowing properties requires some time, effort, and patience. But, if you think about it, all you’re doing is looking for one to four properties a year. Don’t you think it’s worth a little work to change your financial future? We think so.
This is possibly the most crucial question we get. Not only is it a crucial question, but it also leads to the most confusion. Because it involves math, and most people don’t like math.
It also involves financing chit-chat, and again, a lot of investors don’t like talking about financing…even though the entire BRRRR process relies on good, solid numbers with good, solid loans.
But here’s the thing: once you grasp how to properly set up your BRRRR deal, then you can spend little to zero dollars on your properties.
Now, unfortunately, most investors don’t believe this, because, yet again, they’ve been fed misinformation by lenders, realtors, or other investors. So many people believe that have to bring a big down payment to closing.
And that’s because cash-out refinancing has been promoted as part of the BRRRR method. This isn’t a lucrative strategy. Not when there are other types of refinances that allow you to put little to no money in your deals.
The BRRRR method is an excellent real estate investment strategy. And, yes, it can be confusing when you get started. Because there’s a lot of chatter and misinformation flying around. Plus, nobody really likes math or financing. It’s true.
But if you’re willing to learn and do some work, then it’ll become easy. Very easy! And, better yet, lucrative. Because if done correctly, the BRRRR method can be repeated as many times as you want, as quickly as you want. Which means you’ll able to make the kind of money you want.
Happy investing!
If you’re thinking about fixing and flipping or fixing and renting properties, then there are a few things you can look forward to being thankful for.
First, the most obvious, you can make quite a bit of money in the fix and flip and fix and rental game. As long as you understand how to properly find, value, and buy properties, then you can expect some excellent pay days in your future.
Second, you can take the money you make and boost your cash flow. And that extra cash flow means you can start living the kind of live you’ve always dream of. That means quitting your day job, taking more vacations, saving up for a more comfortable retirement, or doing whatever else it is that would make your life better.
Third (and the least thought about) you can make an extremely positive impact on your community.
Without real estate investors, communities would slowly deteriorate and eventually fall into disarray.
Think about the HGTV show, Good Bones. A mother and daughter team up to fix homes that have aged and withered throughout their neighborhood. But, home by home, they’ve revitalized and given their community new life. They’ve given it value, once again.
That’s what all fix and flippers do.
They find neighborhoods, towns, and cities that have fallen into disrepair, and breathe fresh life into them. By doing this, they revive the economy because people want to live there again. Schools, safety, and quality of life rise drastically.
But the only way this can all happen is if real estate investors continue tackling fixer uppers.
So, as you can see, real estate investing is something you can truly be thankful for. It’s a way to boost your cash flow and help your community.
Happy investing! And happy Thanksgiving from our team to you and your family.
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).
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.
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.
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!
Are you a contractor? Good, because we want you to make more money doing what you love.
That’s why we’ve created the Flip-It, Pro-Fit Contractor Partnership Program.
Join us (online) next week to learn more about this special program that’s ONLY for contractors.
The Flip-It, Prof-It program is easy. We’re looking to partner with contractors who want to stop doing work for flippers and start doing work for themselves.
We’ll handle all the funding and paperwork, and you’ll handle the renovations.
It’s as simple as that.
When you partner with us, you don’t need to sweat the “business” side of the deal. Instead, you can do your work and enjoy:
In a nutshell, you do not need to worry about the business side of the deal. We’ll take care of that while you take care of the house.
If you can say yes to those, then tune into our free chat to learn more about the Flip-It, Pro-Fit Contractor Partnership Program?
You may register for FREE here.
Again, here’s when and where the chat will take place:
Mike and the rest of the Hard Money Mike team looks forward to seeing you on Wednesday! Because we want you to make the kind of money you need to live the life you want.
If you have any questions about the program, our team is here to answer them any time.
Happy investing!
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.
Want to join Mike’s Money Chat? Then register for FREE here.
Mike will answer common questions like:
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 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!
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.
Want to join Mike’s Money Chat? Then register for FREE here.
Mike will answer common questions like:
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!
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!