Hard Money Lending for Real Estate — Part 2

The Pros And Cons Of Hard Money Loans I maintain that hard money loans represent one of the single most advantageous funding opportunities for investors to take advantage of. Few sources of capital, if any, can compete on the same level as hard money and offer the same competitive edge. It is hard money loans, after all, that many investors have to thank for acquiring their deals in the first place. That said, hard money is not without its own caveats. Despite its superior benefits, there are downsides to hard money that warrant the consideration of every investor. Let’s take…
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Hard Money Lending for Real Estate

Understanding the basics of hard money lending represents the first step of breaking down real estate financing. Hard money loans are, after all, a real estate investor’s best friend; they are the quickest path to securing a deal. Nonetheless, hard money lending can get complicated quickly, so you need to realize what you are getting into before making any decisions for yourself. First: What Exactly is Hard Money Lending? Many investors looking for alternative financing that doesn’t involve their local bank may have heard the term “hard money.” They may have even asked themselves a simple follow-up question: what IS…
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Smart Money Investor: Fix & Flip 101! — Part 2

Create a Budget Once you have a sense of your target neighborhood and going prices for houses in it, it’s time to set up a house flipping budget. First, you need to know what you can reasonably pay for a new home.  Buying with all cash is the simplest route for home flippers. It cuts out the mortgage application and approval process, as well as makes your offer more attractive to sellers. Plus, you won’t need to make ongoing interest payments for the property as the renovations are underway. Still, some house flippers need financing. According to ATTOM’s 2020 report,…
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Getting Started in Fixing and Flipping

Building a career buying property, fixing it up and then selling it for a profit can be a lucrative endeavor. However, it is also very competitive. You must make sure you have a good plan in place to be successful. There are some tips and advice that you should consider before you launch yourself into the fix and flip rehab market. Start With a Good Plan You should approach a fix and flip career as you would any other business. Create a solid business plan before you begin. Your plan should lay out all the details of your business. Make…
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What Lenders Look for When Providing Financing for Investment Properties

Securing a good piece of real estate is essential when you have a business. However, any piece of property that catches your eye is sure to catch the eye of other business owners, making the competition fierce. In order to come out victorious, you must have your financing in order. This means you are ready to secure a commercial real estate loan. Preparing for financing approval requires knowing what lenders will look at. Keep in mind that a commercial real estate loan is much different than a residential loan. For a commercial loan, the lender considers six different aspects of…
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Tips for First Time Real Estate Investors

Making smart real estate investments can be very lucrative and can be a great way to create wealth. When it comes to diving into your first investment property, it can seem like there are so many things you just don’t know. There are many different investment strategies and finding the right one for you will be crucial to your success in real estate investing. Whether you’re getting advice from your real estate experts, your friends or your family, there are so many things that seem like common sense that might be lost in the mix. Of course, finding the best…
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Smart Money Investor: Fix & Flip 101! — Part 1

How to separate the fact vs. fiction of flipping properties.  No question reality TV shows have shown many of us a glamorous side to the profit potential.  However, does it show the true story?  What are some of the basics you need to know to become successful as a real estate investor? Data is as critical to your success as a fix & flip investor as cash flow.  ATTOM Data Solutions, the average gross profit for house flipping was $62,300 in the first quarter of 2020. This equates to an average percent return of 36.7%, which is down about 3%…
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