Tag Archive for: rental property

How to Find a Good Contractor

How Your Contractor Can Make or Break Your Deal

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How Your Contractor Can Make or Break Your Deal

Having a good contractor can make or break your deal.

But how can you find a quality contractor with a good reputation to complete your fix and flip, rental, or other value-add property?

https://youtu.be/AhyaOinMvyQ

Get Referrals

One of the easiest ways to find a good contractor is to ask friends and other investors for referrals.

Word of mouth is a powerful thing in this business. If someone had a good experience with a lender, title company, or, well, contractor, then it’s worth investigating.

When you ask friends and other investors about their contractor, make sure to ask them if they were happy with their contractor’s:

  • Work
  • Reliability
  • Communication
  • Overall experience

Interview

Once you collect a list of potential contractors, then it’s time to interview them.

Yes, interview.

Because, again, choosing the right contractor to help you fix up a property can be the difference between making a big or small profit.

Or no profit at all.

So, what kind of questions should you ask during each interview? Well, here are some of the most important ones to consider:

  • How many employees do you have?
  • How long have you been in business?
  • Do you have a referral list with current and past customers? Make sure to get phone numbers so you can verify this list.
  • Are you insured? With this one, remember to ask for a copy of their policy binder page showing their name and coverage. They should have General Liability and Worker’s Comp.
  • Who will be doing the work? Will there be any subcontracting, or will you and your team do all the work?
  • Has your company ever been sued or had a lawsuit against it?
  • Have you ever sued a client or filed a lien against a property?
  • Have you ever declared bankruptcy or had a company under a different name?
  • If the project falls behind schedule, what happens?
  • Has your company ever had a serious accident on the job?
  • Who will be at my house and when? Be sure to ask if background checks have been completed, and if there’s a set schedule.
  • May I have a written contract? You’ll want your attorney to review it before signing. Make sure the contract spells out timeframes, as well as how and when the contractor gets paid.

We suggest making a list of all the questions you’d like to ask ahead of time. That way you won’t forget anything during the conversation.

Red Flags

Once you find your ideal contractor, it’s important to stay alert and watch for red flags.

For example, if your contractor demands 25%-50% upfront, find someone else. Because a good contractor should have enough reserves to cover minor expenses to get the job started, except for materials. As for those, you should order everything and have it delivered to your property.

If your contractor has a problem with this, find a different one. Or tell them to purchase the materials themselves (pre-approved by you, of course). You can always compensate them when the job’s done.

They should also have pre-set dates for payments and money for materials.

Above all else, never assume anything. Get everything in writing. It’s your only resource if you need it later.

At the end of the day, it’s all about having a contractor that will respect you and your property. They should:

  • Be trustworthy and treat you fairly
  • Complete the job on time
  • Meet your budget
  • And provide quality work

This might seem like a lot of work to do before the real work begins, but trust us, it’s worth it! If you take the time to find the right property, the right lender, and the right contractor, then your flip or rental project will be a lot easier.

And the payoff will be much greater.

Ready to chat? Great! Our team is always here to help.

Happy investing!

How to Find and Value Properties

Money Chat: How to Find Cash Flowing Properties

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Money Chat: How to Find Cash Flowing Properties

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.

How to Find Cash Flowing Properties

Want to join Mike’s Money Chat? Then register for FREE here.

Mike will answer common questions like:

  • How do I find properties in my area? 
  • How do I evaluate a property to make sure it’s a good investment? 
  • What resources can I use to help me out with this process?

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.

When: Thursday, September 23rd, 11 AM MST

Where: Virtual nationwide.

Register for free at https://my.demio.com/ref/lw8s3Krd8n4vKXqo

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!

How to Find and Value Properties

Last Chance: How to Find and Value Properties

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Last Chance: How to Find and Value a Properties

Do you know how to find and value properties? If not, here’s your second chance to participate in this week’s Money Chat with Mike Bonn.

Mike will be hosting an encore Money Chat tomorrow, Thursday, September 16th at 11 a.m. MST. 

During tomorrow’s chat, Mike will answer all of your questions on how to find and value a property.

Because it’s important to understand how to invest in good, cash flowing properties before putting your hard earned money into real estate deals.

So don’t miss out! This is your second chance to join other like-minded real estate investors and ask all of your questions to a lending expert.

how to find and value a property

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:

  • How do I find properties in my area? 
  • How do I evaluate a property to make sure it’s a good investment? 
  • What resources can I use to help me out with this process?

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 to tomorrow’s chat? No problem. Let us know and we’ll set up more Money Chats on how to find and value a property. Or you can reach out to our team and schedule a time for a one-on-one call. That way you have an opportunity to ask all of your questions on how to find and value properties.

But, if you’d like to tune in LIVE tomorrow to listen and participate with other real estate investors, then here’s your chance.

When?

Tomorrow at 11 AM MST

Where?

Virtual nationwide.

Register for free at https://my.demio.com/ref/lw8s3Krd8n4vKXqo

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 find and value properties

Money Chat Encore: How to Find and Value a Property

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Money Chat Encore: How to Find and Value a Property

Do you know how to find and value a property? If not, here’s your second chance to participate in this week’s Money Chat with Mike Bonn.

Mike will be hosting an encore Money Chat tomorrow, Thursday, September 9th at 11 a.m. MST. 

During tomorrow’s chat, Mike will answer all of your questions on how to find and value a property.

Because it’s important to understand how to invest in good, cash flowing properties before putting your hard earned money into real estate deals.

So don’t miss out! This is your second chance to join other like-minded real estate investors and ask all of your questions to a lending expert.

How to find and value a property

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:

  • How do I find properties in my area? 
  • How do I evaluate a property to make sure it’s a good investment? 
  • What resources can I use to help me out with this process?

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 to tomorrow’s chat? No problem. Let us know and we’ll set up more Money Chats on how to find and value a property. Or you can reach out to our team and schedule a time for a one-on-one call. That way you have an opportunity to ask all of your questions on how to find and value properties.

But, if you’d like to tune in LIVE tomorrow to listen and participate with other real estate investors, then here’s your chance.

When?

Tomorrow at 11 AM MST

Where?

Virtual nationwide.

Register for free at https://my.demio.com/ref/lw8s3Krd8n4vKXqo

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!

Wisdom Wednesday: What's a Good Investment

Wisdom Wednesday: What’s a Good Investment

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On this Wisdom Wednesday, we want to focus on what a good investment looks like.

Because, the truth is, good investments are pretty simple. It all boils down to cash flow.

Good Investment

As long as you have more cash flowing in than flowing out, your investment is a good investment. ~Robert Kiyosaki

Yep, it’s really as simple as that. This concept might seem pretty obvious to most investors. Unfortunately, we’ve seen too many clients fail to evaluate their deals in a way to ensure they generate positive cash flow.

What are some of the most common mistakes we see? Here are just a few:

Fail to shop around for the right lender.

Maybe an investor gets comfortable using the same lender over and over again, or they only call one lender and decide to go with their product. Whatever the case, when real estate investors fail to shop around for the best loan with the best rates and terms, then their cash flow can take a major (and unexpected) hit.

Use their heart more than their head.

Too many investors fall in love with a property and refuse to accept it’s not a good investment once they crunch the numbers. Remember, this is a business. You’re not buying a house for you or your family. You’re buying an asset that’s intended to make you money. So try to use logic rather instead of emotion.

Calculate bad numbers.

Real estate investing comes down to numbers. Pure and simple. But when investors use the wrong numbers, then they use the wrong math. And the wrong math means big consequences for their cash flow. Some common missteps with math include inaccurate comps, underestimated renovation budgets, and hidden lender junk fees. (If a lender promises amazing rates and terms, then it’s probably too good to be true. Ask them about additional fees after closing. For example, will they charge you to withdraw money from your escrow account?)

Those are just a few of the common mistakes new and seasoned real estate investors make. And those mistakes can make a dent in their cash flow. So, their good investment is suddenly not-so-good.

Ready to talk about your next deal to ensure it’s a good investment? Great, our team is always here to chat.

Happy investing!

Florida VRBO: Rental Property Spotlight

Florida VRBO: Rental Property Spotlight

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Florida VRBO: Rental Property Spotlight

Why rent a Florida VRBO when you can reap the benefits of renting out your very own vacation home?

 

 

 

 

 

 

 

 

 

 

 

 

One of our clients just purchased this value-add property in the tropical vacation hot-spot of Florida. They took advantage of our quick and easy financing to purchase this home. They plan to fix it up and start renting it to generate positive cash flow.

We always love helping clients across the country fund their real estate investments. Whether it’s fixing and flipping, wholetailing, or closing a financial gap (bridge loan), our team can help. We even assist with long-term/traditional loans.

Ready to get started? Great! Our team is eager to set you on a path that helps you make the kind of money you need, to live the life you want.

Investing in Real Estate with Zero Down

How to Buy a Value-Add Property with No Money Down in 4 Steps

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How to Buy a Value-Add Property with No Money Down in 4 Steps

Do you know how to buy a value-add property with no money down?

Because, believe it or not, it only takes 4 steps.

Let’s take a closer look at these 4 steps:

#1: Buying discounted properties

It’s pretty rare to find a discounted property on the MLS. You’d have far better luck finding cheap deals through a wholesaler or investor-friendly realtor. And buying a discounted property is very important to making a profit. If you pay full retail value…well, you’ll make far less. In fact, you might not make any money at all.

#2: Setting up a loan properly.

When you want to buy a value-add property like a rental, then you should consider our 2-Step Process. Because it’ll save you a lot of time, money, and stress.

What is the 2-Step Process?

Well, it’s strategic funding method. The first step is buying a property with a hard money loan. The second step is turning around and quickly refinancing with a long-term loan. When you do this, you’re able to qualify for the highest loan amount possible. Plus, you have a much better chance of getting out of a hard money loan fast and into a cheaper traditional loan.

#3: Use rate and term, NOT cash out.

Take a deep breath.

And don’t panic, because we’re not going to dive deep into these hefty mortgage terms. But we are going to highlight the significant differences.

It can be really tempting to set up your loans as cash outs, because you get money at closing. But did you know when you use a cash out loan, you end up:

  • Paying higher costs
  • Taking longer to refinance out of hard money loans (which come with pricy rates)
  • Qualifying for lower loan amounts

Doesn’t sound so good anymore, does it?

So, let’s talk about the benefits of a rate and term refinance instead. With a rate and term, you:

  • Spend less money upfront
  • Refinance faster out of hard money loans. Like, months faster than a cash out refinance.
  • Enjoy lower rates

Better yet, when you use a rate and term refinance, your cash flow will multiply because you get to do more with your money when you pay less for your loans.

This is actually a simple process if you work with someone who can help you with both your hard money and long-term loans, like our sister company the Cash Flow Mortgage Company.

#4: Put $0 down by finding the right lender

The last and most important step is to find a lender who can handle 2-Step loans.

The truth is, there aren’t many real estate lenders out there who are qualified to provide both hard money and conventional loans. That’s why we do.

So if you’re ready to take your real estate investments to the next level and put less money down on your deals, then reach out to our team. We’re always eager to set you on a path the helps you make the kind of money you need to live the life you want.

Happy investing.

Reach Your Cash Flow Goals

Hard Money Mike: Reach Your Cash Flow Goals

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Hard Money Mike: Reach Your Cash Flow Goals

So, why do you need Hard Money Mike?

Well, our company goes far beyond providing quick hard money loans for your value-add properties. We also strive to help you reach your cash flow goals.

We think it’s fair to say that in real estate investing, cash flow is king. Right?

Generating positive cash flow is probably the key similarity among all investors. Whether you’re interested in fix and flips, rentals, or another value-add property, it’s likely main reason you risk your money, dedicate your time, and shed your tears is to make money.

A lot of it.

And the Hard Money Mike team gets that. In fact, we make it our main focus here. Because we know that cash flow means everything. It also means different things to different people. Such as:

  • Freedom from a 9-5 job
  • More time with family
  • Extra vacations
  • A safer, happier retirement
  • A comfier lifestyle
  • Daily Starbucks
  • A new house…Or, you know, a second house that you can escape to when winter hits. Because wouldn’t you’d rather spend the winter sipping piña coladas on a sandy beach than drinking hot cocoa in an ice-covered city? Well, to each their own, right?

Anyway, there are a million reasons why you might want more money in your life, and we want to support you by helping you create specific goals. And then a plan to reach each goal as quickly and efficiently as possible.

Because no matter what kind of real estate investing you’re interested in, it all comes down to numbers. If the numbers don’t work, then the real estate deal doesn’t work. And if the deal doesn’t work, then you won’t be able to generate extra income.

Then it’s bye-bye to those piña coladas. Or, you know, whatever your reason is for investing in real estate and making money.

So, if you’re ready to talk about your goals and creating a strategy to achieve them, then go ahead and reach out to us. Our experienced team is always here and eager to assist you.

Happy investing!

Thursday Tips: How To Analyze Investment Properties

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Thursday Tips: How To Analyze Investment Properties

Ready to learn how to analyze investment properties?

In this great Bigger Pockets article, you’ll learn the nuts and bolts of evaluating real estate deals.

You’ll also discover how to get the information you need to complete a comprehensive evaluation of a neighborhood. That way you can determine which neighborhoods and properties will give you the best return.

And getting the best return is what this business is all about. Because generating positive cash flow is the answer to your financial independence.

But the only way to produce strong income is to put your money in the right properties. And the right properties depend on your analysis.

If you fail to evaluate your deals correctly, then the numbers won’t add up. And that means you might lose money.

A lot of money.

Yikes.

Yes, we’ve said it once and we’ll say it again: Numbers don’t lie.

How To Analyze Investment Properties

Before diving into real estate investing, make sure you understand how to compare markets and properties. Whether you’re trying to decide between investing in Boise or Sacramento—or you’re just comparing two similar homes—this guide will walk you through all the numbers you need to know. From calculating cash-on-cash return to running a comparative market analysis, the experts at BiggerPockets demonstrate the steps you need to follow and the statistics you must know with The Beginner’s Guide to Real Estate Market Analysis.

Ready to learn more about evaluating your real estate investments? Great! Check out the entire Bigger Pockets article here:

Is That Neighborhood Up-and-Coming? Here’s How to Tell

Or if you’re ready to chat about your fix and flips, rentals, and other value-add properties, give our team a head’s up.

Happy investing!

The Real Deal: Colorado Springs 2-Step Process

The Real Deal: Colorado Springs 2-Step Process

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The Real Deal: Colorado Springs 2-Step Process

In today’s Real Deal spotlight, we’d like to share a project that one of our clients in Colorado Springs completed. He used the 2-Step Process to add a rental property to his real estate portfolio.

And boost his cash flow.

The Real Deal: Colorado Springs 2-Step Process

But, first, let’s chat about the 2-Step Process. What is it? And why is it so important to use when it comes to funding your deals?

Well, essentially, the 2-Step Process is how investors interested in BRRRR (Buy, Rehab, Rent, Refinance, Repeat) buy their houses. It allows them to quickly buy a value-add property with a hard money loan, and then quickly refinance into a cheaper long-term loan.

The Real Deal: Colorado Springs 2-Step Process

By using this funding method for his short-term and short-term loan, our client was able to:

  • Save money
  • Invest more by using ARV equity
  • And boost his cash flow.

Furthermore, if our client hadn’t used the 2-Step Process, he might’ve missed out on this great deal. Because he might’ve had to wait weeks or months to close, and when it comes to discounted properties, waiting isn’t an option. If you want to buy, then  you have to buy FAST!

Hard money loans allow you to do that. And we can help you get a hard money loan.

Better yet, our sister company, The Cash Flow Mortgage Company, can help you quickly refinance. Because nobody wants to keep paying high interest rates, right? The faster you can get a long-term loan, the better!

Ready to chat about funding your next rental property? Great! Our team is here for you at any time.

Happy investing!