What Is a Good Debt-to-Equity Ratio?
18
Aug
By Kyle Muth
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Blog, Finance,

What Is a Good Debt-to-Equity Ratio?

A debt-to-equity ratio is one of the metrics you can use to evaluate a company’s health—specifically, whether or not the company is standing on stable financial ground. What is a good debt-to-equity ratio? And how can you use the debt-to-equity ratio to guide your investment choices? What is A Debt-to-Equity Ratio? The debt-to-equity ratio (also known as the “D/E ratio”) is the measurement between a company’s total debt and total equity. In other words, the debt-to-equity ratio tells you how much debt a company uses to finance its operations. For instance, if a company has a debt-to-equity ratio of 1.5,…
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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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01
Apr
By Kyle Muth
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Blog,

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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25
Mar
By Kyle Muth
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Blog,

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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10
Mar
By Kyle Muth
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Blog, Fix-and-Flip,

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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25
Feb
By Kyle Muth
0 Comments
Blog, Fix-and-Flip,

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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