Learn To Be A Fix & Flip Investor

Friday, March 31, 2017

Rehab Investment Property with Second Deed Trust Loan

Second mortgages or home equity lines for a private hard money lender are often used to rehab an investment property. You will need to meet certain asset guidelines to secure a second mortgage. When you don’t meet these guidelines, a second deed trust loan is an option. When you expect the turn around on your property to be quick, or you need additional funds to prepare a property for sale, a second deed trust loan is perfect for you.

Investing Without Spending Your Cash Reserves

When you are in the business of property rehabilitation for resale purposes, your cash reserves can be more important than your credit score. Your ability to borrow money at low interest rates can increase your overall profit margin, but if you don’t meet specific cash flow requirements it can be impossible to secure a second mortgage. You don’t have to deplete your financial resources in order to rehab a property, but you need to be creative with your funding sources.

Time Spent on the Project Influences Profits

The longer it takes for you to prepare a home for resale, the more money you will spend on first and second mortgage payments. Knowing that you have monthly payments to make will help keep you motivated to get the job done on time.

Avoid Liquidating Other Assets to Rehab a Property

Some property investors will sell off a smaller property to solve cash flow issues when trying to secure a second mortgage. While this works, you may have to sell a property for less than it’s worth in order to sell quickly. A second deed trust loan is a better alternative that offers a lower financial risk than selling off a property under pressure. When you want to rehab a property and you need extra money, a second deed loan is a great choice.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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Wednesday, March 29, 2017

Here’s Why You Need to Reconsider Private Money Lenders in California

Well, you must have heard the phrase “All that glitters is not gold; same is the case with private money lenders in California. These lenders do vouch to get you money at a faster pace. However, it is advised to make an informed decision after weighing the pros and cons.

The corporate fraternity is prone to vulnerabilities that might affect your business. Such circumstances are unavoidable and need to be dealt with precision. However, if you are a nascent business in its initial phase, then the probability is high that you might not have an ample capital at your disposal.

For such situations, here are a few things that can help you make an informed decision.

Assess the situation

The private money lenders in California are a viable option for immediate capital that might sound attractive. However, knowing what you are getting into before opting for the loan seems a safer bet.

It needs to be cleared that no private money lender in California will give you a long-term loan. That is not how it works.

In most cases, the timespan to payback stretches to 18-months. Thus, within a short passage of time, you will be expected to make the refund. Moreover, since the loan is short-term, the interest rate will be high and expected payment will be hefty.

As appealing as getting your loan within a few days sounds, in contrast to a few weeks; the payback can be a major setback if not planned smartly. Thus, make sure to evaluate if you will be able to make timely payments before signing the deal.

Look at the greater good

In certain cases, private money lenders in California might seem like the best possible option. However, if the intensity of the situation is not high then making an objective decision that takes the pros and cons into consideration is a smarter way to go about things.

In scenarios where such loans will help you generate a steady revenue stream, private money lenders in California is the right choice. On the contrary, if the cash flow will not blossom, then an alternative revenue stream is a safer option.

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Three Things to Take Into Consideration While Looking For a Commercial Lending Option

Starting your own business venture is a crucial decision that requires a lot of resilience, hard work, and capital. However, many times businessmen need to take a step back due to the loan applications that deck up without any fruitful outcomes.

If you can get the money you require to move on and take your next big step, everything can change. However, to make it happen, you need to find the right commercial lending company. At the time when I was looking to make things happen for myself, the financial situation was extremely vulnerable and it was rather difficult for me to manage on my own. However, I met a few people who advised me a couple of things to take into consideration while looking for an option. The tips mentioned in this article will help you choose the best commercial loan options.

Credit Score

Your credit (card) score matters a lot if you are in search of commercial real estate loans. If you are new to the business fraternity, the commercial lending companies would rather be interested in having a look at your credit score to get an overview of how well you can manage finances.

Business Timeframe

The commercial loan service will also be looking for the time you are in for business. Any traditional company would want the business to be operational for a year or two before approving a loan. The main reason is because that is how they will know that you can pay them back once the loan is approved. However, there a few lending options that would be okay if the business is operational for a couple of months only.

Possible Revenue

One of the most important factor is revenue. Yes, the lending companies do not only want the company to be up and running for either a few months or years. It wants to see how much money your business is bringing to the table. This way they can feel positive about the possibility of returning the loan.

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3 Things to Keep In Mind While Taking a Commercial Loan

Congratulations! You are one of the few entrepreneurs who has successfully started their business. However, to succeed and sustain in this extremely competitive market, you will need a smooth stream of capital. Thus, before you start looking for commercial lending options, make sure to keep your future growth and ROI in mind.

With a new business venture, the primary goal is to make sales, generate revenues, and make a healthy profit. The issue with businesses is that the market is volatile with several opportunities that need to be cashed. Looking and seizing the right opportunity can thus take your business a long way.

Before approaching a firm for commercial real estate loans, here are three things which you should keep in mind:

· Look at the bigger picture

If you are new in the business fraternity, it is easy to sit back, relax, and rationalize the future once the money starts flowing in. You could be thinking of a company who would grant you commercial loans to grow bigger and faster. The task seems easy, but the bad news is that it is not.

Before reaching this point, you should think if you are ready for all this. Things might be smooth for the time being but always look at the bigger picture. You should plan a few months ahead, look at finances carefully, and then plan your next move.

· Find the right option

Once you have decided to escalate things and approach a commercial lending company, make sure that you are open to sharing everything with the concerned party. The commercial loan option will be interested in having a look at your business finances and a few other things to evaluate the condition.

· Hit the bull's eye: Go ONLINE

In the present era, everything you desire is easily accessible online. Hence, there are high chances that you will be looking for the right commercial loans options online. So why not try one that will cater to your commercial lending requirements.

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Self-assessing your needs for Commercial lending- 5 questions that should be answered.

You have a feeling that your business calls for expansion but you are not sure if it is feasible! Do you really think it’s time for getting some loan?

Commercial lending or loans often face challenges of immediate approval. Imagine you are an artist who sells small sculptures online. Now your clientele is big enough that you might need a shop or commercial space to setup your business. For that you need to get a real estate commercial loan to buy or rent the space. Here are 5 questions you should expect from the lender when you are applying for commercial loans:

How much investment you require? If you thought figuring out the required investment was easy, think again. It’s not just a number but a thorough working is required. From the rent of space to cost of equipment; from furnishing to buying raw material, all details matter. So before you get stuck with the wrong loan amount do your research.

Why do you need it? Evaluate each and every detail. If you think you have enough equipment and you just need space, go for the exact amount. Identifying reason for the accurate amount allows controlling your capital and investing it in right direction.

At what time, money is needed and would it be feasible for you to work with a certain portion? Some businesses cannot work without certain amount of investment but others can be operational with a smaller percentage of it and afterwards you can cover them down the line. So ask yourself again before getting a loan.

Do you have clean credit history? Lenders always want to play safe when lending you money. They will dig into your credit history to investigate if you are good decision maker with finances and what you have been doing wrong.

Can your business gain profits? If they are lending you money, they need to be sure that you are going to win the market. They won’t prefer working with typically old ideas. You need to work on feasibility and viability of your business. Plus, you need to look confident about it, if not; you are going to lose your commercial loan.

Get your answers prepared and you won’t be disappointed. If you do your homework right, you will know what you need and how big it should be.

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Tuesday, March 28, 2017

7 tips to be successful for your first or next fix & flip.

There are alot of people getting into the fix and flip business. Here are some tips that I’ve discoverd when I’ve talked to flippers over the past decade.

1. Know Your Area – There are all sorts of things a fix and flipper should know about the area he is flipping. The prices of similar homes that have recently sold in the area are only part of the equation. You have to know the schools, the traffic, if the neighborhood is expecting any major changes, and other details that make it attractive to buyers.

2. Know The Market – The fix & flip market is ever-changing, and even neighborhoods and subdivisions follow their own trends. You have to be able to make accurate predictions on what the property will be worth once the renovations are complete. Are there other rehabs to compare to?

3. Over Estimate? Whether you’re taking out a hard money loan or saving up your own cash, you must set aside funds for unexpected expenses. Sometimes necessary repairs don’t become apparent until the renovation is underway, and other times they can prove to be far more costly than the budget allows for. Overestimate or have a reserve account built into your budget.

4. Understand Holding Time – When you fix & flip real estate, having a solid timeline in mind is essential. Knowing how long you have to complete a project, and keeping everything on schedule, can make a huge difference in the amount of profit you see. Also factor in the amount of time to sell the home once completed.

5. Be Aware of the Industry – From bidding, through buying, renovating, and selling, you’ll need to be in contact with numerous professionals. Create relationships you can count on, hard money lender Texas finding the cheapest does not always make you the most money. Fix and flip projects are about reliable timely resources and professionals that follow through.

6. Finding Pros- While some start-ups do all the renovations independently, there are numerous professionals you may need to call on at some point to get an expert job done fast. Electricians, plumbers, contractors, painters, hard money lenders Texas and other helpers are beneficial, but you’ll need to establish relationships with trustworthy people before you begin.

7. Get Educated - Most Successful flippers have one thing in common - They are Licensed Real Estate Agents.

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