CMBS Loan Basics
11
Jun
By Kyle Muth
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Blog,

CMBS Loan Basics

Some Basics on CMBS (Conduit) Loans Commercial real estate investors have a plethora of loan options to consider before choosing the right source. One of the most popular investment options is a CMBS loan. CMBS loans, also known as conduit loans, allow commercial real estate (CRE) investors an opportunity to finance commercial properties of all sizes; with loans starting as low as $2MM. Despite having been around since the 1900s, many investors are unfamiliar with what conduit loans are and how they work. This is especially true when working with small banks, as most simply do not offer CMBS loans.…
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What Is a Fix & Flip Loan?
27
May
By Kyle Muth
1 Comment
Fix-and-Flip, ,

What Is a Fix & Flip Loan?

Fix-and-flip loans are short-term loans used by real estate investors to purchase and improve a property to then sell for a profit. These improvements range from minor renovations to a complete reconstruction of an existing home. These loans are used exclusively for residential real estate investments, so renovating a school, for instance, would not qualify for this type of funding. In a fix-and-flip project, the property is often purchased from MLS, off-market, at auction through a foreclosure or a bank short sale. A buyer may later try to sell the property “as-is” or may choose to add value by improving…
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What is the 2% Rule? Is It a Smart Real Estate Investing Strategy?
06
May
By Kyle Muth
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Real Estate Investments, ,

What is the 2% Rule? Is It a Smart Real Estate Investing Strategy?

Many real estate investors have heard of the 1% Rule, but what about the 2% Rule?  The 2% Rule states that if the monthly rent for a given property is at least 2% of the purchase price, it will likely cash flow nicely. It looks like this: monthly rent / purchase price = X.  If X is less than 0.02 (the decimal form of 2%) then the property is not a 2% property. If it is 0.02 or greater, then you’ve found a 2% property. This can then shed some light on whether or not a property is likely to…
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What is a Rehab Loan?
05
May
By Kyle Muth
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Loan Programs, Real Estate Investments, ,

What is a Rehab Loan?

A rehab loan is also referred to as a renovation loan and it will allow property buyers to finance both the purchase / refinance and rehab of a property through one mortgage. If you are planning on flipping houses for profit, you will likely have to make significant repairs and renovations to the house. In order to do this, you’ll probably need a rehab loan to pay for the property and its repairs so you can sell it at it’s new value.  There are three main types of rehab loans for investors you should know about: 1. A FHA 203(k)…
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The Real Estate Investor’s Guide To Refinancing Rental Property
23
Apr
By Kyle Muth
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Rental Properties,

The Real Estate Investor’s Guide To Refinancing Rental Property

Refinancing rental properties has become synonymous with several compelling benefits. At the very least, it can unlock a multitude of wealth-building opportunities, including the ability to lower interest rates and monthly payments, improve loan terms, and earn additional cash flow. That said, far too few new investors are aware that this strategy even exists. For one reason or another, there’s an entire contingent of investors that don’t even realize the opportunity they are missing out on. Despite the many reasons one may have to refinance rental property assets, the process should not be taken lightly. To be clear, rental property…
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15
Apr
By Kyle Muth
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Home Improvements, Real Estate Investments,

Which Home Improvements Add to Your Cost Basis?

Knowing how to calculate your cost basis can save you money on real estate taxes.  Real Estate Investor Tip: When you sell a property at a profit, you have to pay capital gains taxes on the sale. However, your capital gain isn’t the difference between the price you paid for the property and the price you sell it for. There are several other expenses that add to your cost basis. Knowing what expenses can and cannot be added to your cost basis helps you accurately calculate your capital gain on a real estate sale. This can save you significant money…
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12
Apr
By Kyle Muth
0 Comments
Real Estate Investments,

Is Buying a Multifamily Property a Good Investment?

When deciding whether to purchase a multifamily property (and what kind to purchase), it’s important to review the benefits and disadvantages of investing in multifamily properties.  While we’ll address this in a traditional pros and cons fashion, it may be equally effective to look at multifamily investing through a different lens; by analyzing its risks, benefits, and the required time commitment involved. To put multifamily investing into a reasonable context, it needs to be compared to the alternate investments one could purchase — say, stock in a well-known company. For instance, if we compare purchasing a 10-unit apartment property for…
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