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Mixed Use Properties — Why They Are a Good Investment

Mixed Use Properties — Why They Are a Good Investment

Maybe you’ve never heard of the term mixed-use property, but we can guarantee you’ve been in one. Mixed-use properties exist all over the place – these properties are real estate developments that have different uses (retail, residential, offices, hotel, etc.). In a mixed-use property, the separate uses all compliment each other. Mixed-use properties come in all shapes and sizes: they can be a single building or take up an entire neighborhood. Right now, there is an increasing number of real estate investors looking to invest in this type of property, and you can be one of them! Investing in these…
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How to Create Predictable Cash Flow

How to Create Predictable Cash Flow

Companies need to make financial statements of their businesses to track their spendings. These financial statements mostly include the income statement, balance sheet, and cash flow. Doing this helps the company to come up with plans on how to deal with their future spendings. But most of them are having a hard time predicting the cash flow of their business. Uncertainty about your cash flow makes it difficult for you to invest in long-term demands because you find it difficult to maintain balance, and it also comes with burdens. Here are some useful strategies to help you make your cash…
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15 or 30-Year Loan for an Investment Property: What’s the Best Move?

15 or 30-Year Loan for an Investment Property: What’s the Best Move?

There's a lot to be gained by buying an investment property. Not only can you take in monthly rental income from tenants, but you can also hold on to that property until its value increases and sell it at a profit.  However, many real estate investors can't buy a rental property outright. If you're looking to take out a mortgage for your investment property, you may be wondering whether to opt for a 15-year loan or a 30-year loan. There are pros and cons to both options. Here's what you need to know.  The 15-year mortgage The primary benefit of…
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CMBS Loan Basics

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?

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?

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?

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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