Tag Archive for: real estate

9 Questions to Ask Before You Commit to a Hard Money Loan

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Today we are going to share the 9 questions to ask before you commit to a hard money loan.Yes, cost matters. However, cost is not the only thing that matters. Before you commit to a hard money loan, you need to look at the full picture. Funding is half of real estate investing. After all, you need money to make money. So let’s walk through nine smart questions to ask before you sign anything.

1. Can They Actually Close and Fund On Time?

First and most important, can they close? Are you talking to a broker? Or are you talking to a direct lender? Either way, you must make sure the money is real and ready.

Because here’s the truth, if you get a property under contract and your lender fails to fund, you damage your reputation.

For example, imagine you lock up a deal from a wholesaler. Then closing day comes. Your lender delays two weeks. That wholesaler will likely stop sending you deals.

Therefore, verify funding.

  • Ask for referrals

  • Ask who controls the money

  • Ask how long they typically take to close

In this business, speed matters. So make sure they can perform.

2. Will They Fund the Full Amount You Need?

Next, will they fund enough to make the deal work?

You need to cover:

  • Purchase price

  • Rehab budget

  • Closing costs

  • Possibly payments

If the lender only funds part of it, do you have the rest?

For example, let’s say the lender funds 85% of purchase and 80% of rehab. However, you don’t have the extra cash. Now you’re short. As a result, your project slows down. And when projects slow down, costs rise.

So instead, make sure the deal is funded from start to finish. From close to close.

3. Does the Pricing Match Your Timeline?

Every deal has a timeline. Some flips take 2 months. Others take 9 to 12 months. Therefore, pricing must match your plan.

Sometimes it makes sense to pay more points and get a lower interest rate. Other times, it makes sense to pay fewer points and accept a slightly higher rate.

For example:

  • Lender A: 3 points, 12-month term

  • Lender B: 1.5 points, 6-month term

At first glance, Lender B looks cheaper. However, if your project runs 8 months, you may pay another 1.5 points. Now it costs more. So always match the loan to the project.

4. What Is the Real Interest Rate?

Now let’s talk about interest.

Ask these questions:

  • What is the note rate?

  • Is there a minimum interest period (3–6 months)?

  • Do they charge interest on unused rehab funds?

  • What is the default rate?

Because here’s the problem. Some loans require you to keep the loan for 3 months minimum. Even if you sell in 30 days, you still pay 3 months of interest. Also, default rates can jump high fast. So before you sign, understand every detail about the interest. Clarity now prevents stress later.

5. How Many Points Are They Charging?

Points are simply a percentage of the loan.

For example:

If your loan is $200,000
And they charge 2 points
That equals $4,000 upfront

Now, lower points often look better. However, points must be viewed alongside term length. If one lender charges 3 points but gives you 18 months, that may work. Meanwhile, another lender may charge 1 point but only give you 6 months. So again, match the structure to your project.

6. What Other Fees Are Involved?

Points and interest are obvious. However, fees often hide in the fine print.

Common fees include:

  • Underwriting fees

  • Processing fees

  • Doc fees

  • Legal fees

  • Appraisal fees

  • Draw fees

  • Inspection fees

  • Wire fees

At closing, you must add all of this together. That total is your true cost of money.

For example, one lender may advertise lower points. However, they charge five extra fees. Meanwhile, another lender charges slightly higher points but almost no extra fees.

So always calculate the full cost.

7. What Are Their Lending Limits?

Next, what will they actually lend?

Ask:

  • What percentage of purchase? (70%, 80%, 90%?)

  • What percentage of rehab? (80%, 100%?)

  • What LTV or ARV do they use?

Because not all deals are the same.

For example, maybe you’re doing a pop-top addition. Or maybe you’re adding square footage. Some lenders dislike those projects. Others welcome them.

Therefore, make sure the limits fit your deal. The right lender for one project may not be right for another.

8. What Experience Do They Require?

Experience matters — especially with larger institutional lenders.

Many lenders want:

  • 2–5 flips in the last 3 years

If you don’t have that, they may lower your leverage. Or worse, they may deny the deal. However, many true hard money lenders care more about the deal itself.

For example, a contractor moving into flipping may qualify. A realtor who understands value may qualify.

So ask upfront:

  • What experience do you require?

  • What proof do you need?

That way, you avoid surprises.

9. How Does My Credit Score Affect Terms?

Finally, understand how your credit score impacts the loan.

Large lenders often reward high scores with:

  • Higher LTV

  • Lower rates

  • Lower points

For example:

A 740 credit score may get 90% purchase and 100% rehab.
A 620 score may get 80% and 80%.

True hard money lenders usually focus less on score and more on the deal. However, they still want to see responsible behavior. If you use credit cards heavily but pay on time, many understand that. After all, investors use credit as part of the business. Still, ask how your score changes your terms. Because better terms mean more profit.

Final Thoughts: Funding Is Half the Game

Hard money loans can be powerful. They can help you move fast. They can help you secure strong deals. However, the wrong loan can eat your profit.

So before you commit:

  1. Make sure they can close on time.

  2. Make sure they fund the full amount.

  3. Match pricing to timeline.

  4. Understand interest.

  5. Review points.

  6. Calculate all fees.

  7. Confirm lending limits.

  8. Clarify experience requirements.

  9. Know how credit affects terms.

Then, and only then, move forward. Because when you get your money right, your project runs smoother. And when your project runs smoother, your profits grow. Run your numbers. Compare lenders. Use tools that show you the full cost.

Good investing starts with smart funding.

 Watch our most recent video today on: 9 questions to ask before you commit to a hard money loan

3 REAL Ways to Get 100% Financing in Real Estate

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Today we are going to discuss the 3 REAL Ways to Get 100% Financing in Real Estate.

Most new investors think they need all cash to buy real estate. However, that is not true.

Today, smart investors often use 100% financing. In fact, when you add closing costs, payments, and surprises, deals often need closer to 120% funding.

Because besides the purchase and rehab, you also pay for:

  • Closing costs

  • Carry costs (monthly payments, utilities, taxes)

  • Repair overruns

  • Escrow and reserve funding

  • Contractor timing gaps

So, the real question becomes:

Where does the extra money come from?

Let’s walk through the three real-world ways investors actually do this every day.

First: Use a HELOC (Home Equity Line of Credit)

A HELOC is the most common tool investors use to reach 100% financing.

Because once it is open, money sits ready for you to use.

So, instead of asking a lender for more money every time something changes, you simply transfer funds when needed.

Why investors love HELOCs

  • Money is ready anytime

  • No approval needed per deal

  • Usually lower rates than flip loans

  • No new closing costs each time

  • You reuse it again and again

Most HELOCs stay open for about 10 years, so investors use the same line on many deals.

Example

For example, one investor needed about $85,000 beyond her lender’s loan.

So she used:

  • Cash savings

  • Plus $55,000 from her HELOC

Because of that, she covered closing costs, overruns, and reserves without slowing down the project.

And speed matters. Therefore, having funds ready helps deals move fast.

Second: Business Lines of Credit

Next, we look at business lines of credit.

These work like HELOCs, however they do not require home equity.

So, investors use them when they:

  • Rent their home

  • Have limited equity

  • Want extra backup funding

Why they help

  • Money sits ready when needed

  • No property tied up

  • Funds recycle as you repay

  • Easy transfers once approved

Rates usually run higher than HELOCs. However, investors still use them because the money stays flexible.

Example

For instance, a small investor opened a $40,000 business credit line.

Later, when a rehab ran over budget, he paid contractors immediately instead of waiting on lender approvals.

So, the project stayed on schedule.

And again, speed wins in real estate.

Third: Private Money

Finally, we reach the most powerful tool: private money.

Private money means borrowing from individuals instead of banks.

These lenders simply want:

  • Better returns than savings accounts

  • Safer investments than stocks

  • Steady income from real estate loans

Meanwhile, investors get flexible funding.

Why private money works

  • No bank approval delays

  • Flexible deal terms

  • Faster funding

  • Less focus on credit score

  • Relationship-based lending

Because once trust builds, deals fund faster.

Example

For example, many investors meet lenders at:

  • Real estate meetups

  • Investment clubs

  • Networking events

Half the room usually wants deals. Meanwhile, the other half wants better returns on their money.

So, investors connect the two sides.

And both win.

Build Your Funding Stack

Successful investors rarely rely on just one tool.

Instead, they build a funding stack, including:

  • HELOC funds

  • Business credit lines

  • Private lenders

So, when deals appear, money already waits.

Meanwhile, investors who scramble for funding often miss good deals.

Action Steps You Can Take Now

Therefore, if you want 100% financing, start here:

Step 1 — Improve Your Credit

Higher scores unlock better HELOC and credit lines.

Step 2 — Talk to Local Banks & Credit Unions

Many offer HELOC and business credit options.

Step 3 — Attend Investor Meetups

Private lenders often wait in those rooms.

Step 4 — Plan Before You Buy

Smart investors line up money first.

Then they shop for deals.

Final Thought

Real estate investing moves fast.

However, investors win when they control funding, not when funding controls them.

So start building your funding stack now.

Because when the right deal shows up, you want money ready at your fingertips.

And that is how investors truly reach 100% financing in real estate.

Watch our most recent video to find out more about: 3 REAL Ways to Get 100% Financing in Real Estate

Get Ready for Real Estate Opportunities in 2024

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Real estate opportunities are coming in 2024, and we want you to be ready!

The stats are clear: it’s a great time to be a real estate investor. So how can you prepare your money to take advantage of the market?

Let’s start with looking at why this opportunity is coming and how it’s leading to a beneficial market for investors. Then we’ll dive into what you can do to be prepared.

Rising Debt Levels and Stress

Rates are rising, and with that, consumer debt, credit cards, and student loans have also increased. According to the Fed, they’ve all hit a new high at $17 trillion in consumer debt. 

With more debt out there (and higher balances), consumers are under more stress as banks look for even higher credit scores. Because of this, even though home prices are stabilizing—potentially even going down—a lot of people can’t tap into that equity.

Implications for Real Estate Investors

This might sound like bad news. However, if you’re a real estate investor who’s prepared for these changes, this is going to create some real opportunities in the near future!

As consumers credit cards, rates, payments, and stress rise, a lot of people are going to be vacating their properties. 

We can help those people who are in need of relief to take over properties and create the generational wealth and the mailbox income they need.

We didn’t create the problems these people are facing. But through smart investment and coming alongside new investors, we can turn the situation around.

Key Statistics to Understand the Opportunities

Consumer Debt: We already mentioned the $17 trillion in consumer debt.

Credit Card Delinquency: According to the Fed, over the past six quarters, we’ve seen a rise in credit card delinquencies. While the numbers aren’t astronomical, they are rising. If rates keep going up, we’re going to start seeing more defaults.

Mortgage Delinquency: Credit cards will also stress people’s money which can trickle into mortgage delinquencies. Although mortgage delinquencies haven’t shot up yet, we can expect a boomerang effect in about six months because of the rising rates of consumer debt. 

How Does This Affect Consumers?

Let’s look at an example.

Let’s say a year and a half ago, someone had a credit card balance of $10,000. Interest rates were low. We’ll say they had a 14% interest rate, and they maintained that $10,000 balance throughout the year. So that would mean they have about a $1,400 payment of interest to the credit cards over that time, or just a little over a hundred dollars each month. 

Today, interest rates and balances have gone up, while credit scores have gone down. 

Now, for the same consumer, interest rates are likely to be closer to 29%. Instead of paying $1,400 for the year, that rate has more than doubled at $2,900 or just under $250 a month. 

Those numbers are pretty small in comparison to what a lot of consumers are facing: $30,000-$50,000 in credit card debt, car payments, student loans.

Additionally, most people’s income isn’t rising as fast as their interest payments. 

This Creates Real Estate Opportunities… If You’re Prepared!

If real estate investors take these signs seriously, there’s a huge opportunity for business. But you have to start getting your money in line now.

1. Find hard money.

Hard money is extremely versatile. Because of this, it’s great for when you need to make quick deals or close in days instead of weeks. 

Hard money can also offer a higher loan to value which is perfect for the market we’re looking at in 2024. If you want to learn more about hard money, check out our recent post on all the different things you can do with hard money.

2. Raise your credit score.

In order to take advantage of the coming opportunities, you need to make sure your credit score is in line. 

Lenders aren’t always going to cover everything, so you need credit cards in your money bucket to cover those other expenses.

3. Fill your money bucket.

Where does that money for your money bucket come from? 

There are a few ways to fill your money bucket. One of the most important ways to make sure you have funds is to use business credit cards whenever possible. By separating your personal credit from your business credit, you protect your credit score and can keep it higher. 

If you need help settling personal credit cards to fix your score, our sister company The Cashflow Company can help with that. 

In addition to credit, you can fill your money bucket with HELOCs, other lines of credit, or other people’s money. Getting friends and family to invest in your projects often gives them a better return. It also ensures you have the funds to work with while your lenders are still determining your approval.

4. Partner with a reliable lending company.

Companies like us work really well with these types of real estate opportunities. With hard money, you’re able to take advantage of these moments because you won’t have to wait for slower lenders. 

Similarly, if you’re in a rural area or smaller town, you might have trouble finding a good deal with Wall Street-type lenders. Large lenders often add additional rules and regulations to rural areas, whereas hard money is flexible no matter who or where you are. 

It’s important to find the right lender for your project.

If it’s unique and you’re looking to close quickly, look at hard money loans. Hard money is going to be more important in the coming real estate wave than ever before.

Don’t Miss Your Opportunity!

In the next year, look out for real estate opportunities. This is your chance to create that generational wealth that can change everything. 

Our whole goal here is to make sure you’re successful. 

We have tons of free tools on our website, so make sure you check those out as you’re preparing for 2024. They’re free and easy to use!

Again, if you have questions about the next wave of real estate investing or want to see if a hard money loan is right for you, send us a message at Info@HardMoneyMike.com.

Happy Investing.

What Can You Do With A Hard Money Loan?

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Hard money is so versatile! Understanding how much you can do with a hard money loan can open doors for your projects.

As long as the deal you’re looking for is backed by real estate for investment or business purposes, hard money is one of the most flexible options out there.

Unlike a lot of other options, hard money lenders aren’t confined by the same restrictions as traditional loans. This means you can use hard money for a wider variety of real estate investment projects.

Fix and Flip Hard Money Loans

Hard money loans work exceptionally well for fix and flip projects. Here at Hard Money Mike, we specialize in hard money loans for fix and flips. 

Hard money loans can often be specialized for your individual project which makes them ideal for real estate investing and renovations. 

Similarly, if you’re looking to renovate and rent (instead of sell), you can look for a hard money loan to help cover the cost of rennovations.

Gap Funding with Hard Money

Gap funding is a term used for a variety of loans that cover the “gaps” in a larger loan. This is often simple to find through hard money loans, provided there’s good equity in the deal.

One type of gap funding is bridge loans. If you need temporary financing or are looking to buy one property before selling the other, look for bridge loans from hard money lenders.

Similarly, gap funding also covers usage loans. With usage loans, lenders pay off the investor’s credit cards which helps their credit score go up. This lets real estate investors get the funding they need to focus on their project.

We also strongly encourage our investors to have a separate business credit card to keep their scores high.

Project Completion Loans

If a property is sitting stale or taking too long to get money out of escrow, hard money loans can play a huge role in project completion. 

The faster you complete your project, the lower your overall project cost. Also, the better chance you have of hitting a good selling window in the market.

Land Purchase and Development

The flexibility of hard money can work well for investors and business owners who want to buy property to develop. While big companies are often less interested in rural areas, hard money lending doesn’t have those same hang-ups.

Additionally, because hard money lenders can adjust for the client’s needs, it’s easier for you to buy large plots of land to later split into multiple parcels. It’s also easier to use that money for things like modular home development.

A good hard money lender will be able to help you get money in order to purchase and begin development quickly.

Hard Money Loans for Business Needs

You can use a hard money to buy out a partner who owns real estate or to expand their business by buying equipment or other needs. 

If you’re a business owner, you also might be able to use a hard money loan to cover payroll expenses thanks to its flexibility. So long as some level of real estate is involved, hard money lenders are able to support.

First Time Investors or Poor Credit Scores

If you’re a first time investor looking for a good deal, hard money is likely the way to go. 

Depending on how good the deal is, hard money lenders will sometimes give up to 90% to 100% even if your credit score is less than 600.

Hard money lenders are able to be more understanding regarding credit scores and are often more willing to lend to people with lower scores. This in turn really helps out newer investors who are trying to build capital.

Unlike large Wall Street-type companies, hard money lenders care more about the loan to value and the property’s value.

Hard Money for Unique Projects and Situations

Hard money is ideal for unique situations and real deals that can make investors money. 

If you find yourself stalled in the middle of a project and pressed for money, hard money lenders are flexible. Even in the middle of a mess, a good lender will try to help you find a solution.

Refinancing during a project can be tricky, but it’s significantly easier with hard money.

Similarly, strange situations happen all the time that can leave investors high and dry. If a bank is bought out and your loan is due when you’re not ready, hard money loans can bail you out.

Hard money also works well for mixed use commercial projects. 

Wholetail and Transactional Deals with Hard Money

If you’re looking for a short term wholetail deal, hard money works well. Hard money can even work for loans as short as 30 or 60 days. 

Transactional deals refer to when you’ve found an amazing deal and you plan on buying and selling within a week.

Hard money is perfect for those kinds of deals because they often have a higher loan to value than private lenders like.

The Benefits of Being Outside the Box

Hard money lenders don’t have a box we need to fit into which lets us help you out in a wide range of situations. 

Especially in 2023, banks are walking away from certain deals which makes hard money even more important.

If you’re interested in looking at more traditional loans, check out The Cash Flow Company. However, if your project is outside of the box, hard money might be the way to go.

If you have questions or want to talk about your project, contact us at Info@HardMoneyMike.com.

You can also check us out on our YouTube channel.

Happy Investing.

5 Ways to Make Money in a Volatile Market

5 Ways to Make Money in a Volatile Market

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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 ========================

 

Why Realtors Make Good Team Members

Why Realtors Make Good Team Members

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Why Realtors Make Good Team Members

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.

So, what type of realtor should you work with?

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.

Most importantly, the right realtor will LOVE working with investors.

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!

How to Make Money Bird Dogging

How to Make Money Bird Dogging

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How to Make Money Bird Dogging

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.

What is 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.

Essentially, you become the eyes and ears of the market.

So, what are some of the biggest benefits of bird dogging?

  • First off, it’s great for beginners who want to learn more about real estate investing. Maybe you’re not ready to flip or rent homes now, but you want to in the future. Bird dogging is a great introduction to both.
  • Unlike flipping and renting, bird dogging also doesn’t require any money to start. You don’t need to worry about classes, training, loans, or anything else that requires cash out of your own pocket.
  • Bird dogging is also something you can do when you have the time. So, it’s easy to fit into your schedule, be it during your lunch break, after you drop off the kids at school, or during your Sunday stroll. Really, whenever works for you!
  • Better yet, bird dogging can create multiple streams of income. You can make money when you find an investment property, when a wholesaler or realtor sells it to a flipper, and—if it’s a flipper—when they sell it after renovating it.

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.

How to Buy: Breaking Down BRRRR

How to Buy: Breaking Down BRRRR

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How to Buy: Breaking Down BRRRR

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.

First you need to find under market properties that you can add value to.

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.

You also need to work with the right lenders.

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!

The right lender will give you a loan that is 75% of your ARV.

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!

3 Problems That Cause BRRRR Confusion

3 Problems That Cause BRRRR Confusion

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3 Problems That Cause BRRRR Confusion

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.

#1: Is BRRRR real?

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.

#2: “Can you really find properties that work for BRRRR?”

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.

#3: “How much money do I need to make BRRRR work?”

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!

What You Can Be Thankful For as a Real Estate Investor

What You Can Be Thankful For as a Real Estate Investor

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What You Can Be Thankful For as a Real Estate Investor

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.

https://youtu.be/LDrF5Bs_JLs

Money

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.

Cash flow

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.

Community

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.