As the Federal Reserve sends out signals that interest rates may soon be on the rise, many real estate investors are preparing to take advantage of the fix and flip opportunities that will inevitably follow. While the rate rise is expected to be minimal, it may be enough to cause a corresponding rise in foreclosure rates across the nation. That being the case, how best may real estate investors proceed? What are the steps to take to benefit from current market conditions? What is the best advice for fix and flip financing today?
Real estate investment can be scary, especially when people start throwing around the phrase hard money. While it might sound like something out of a heist movie, the kind where the heroes need to make a big score or get their kneecaps broken by a bad guy in a pinstripe suit, hard money loans are actually fairly common when it comes to real estate investing.
Bad Credit? Why Residential Hard Money Can Be Your Saving Grace
Posted by Ken Meyer on Tue, Jul 14, 2015Anyone who has not been keeping a close eye on their portfolio and their property inventory in this economy is not in the Real Estate Investing business. Part of the problem is that it isn't just your business you have to take into account. Suppliers, labor, and buyers for the flip market all play into the situation.
Fix and flip financing, also called hard money loans, sometimes conjures up images of boogeymen in pin-striped suits making obscure threats about what will happen if they don't get their money back on time. Real hard money loans, though, are simply investments given to a real estate buyer by a business person who expects to make a profit off of that funding. There's no broken knee caps, pinky rings, or other Hollywood elements involved. A hard money lender is just a private lender who often steps in when the bank won't to offer the financial support a property flipper needs.
The Ultimate Cheat Sheet for Acquiring Fix and Flip Financing from Hard Money Lenders
Posted by Ken Meyer on Tue, Jun 30, 2015Many advertisements from lenders make it sound simple to get into the fix and flip business. All you have to do is (a) find a fixer-upper, (b) buy it cheap, (c) fix it up quick, and (d) sell it fast for a great profit, right? Well, experienced real estate investors know there is a lot of ground between (a) and (d). There is an art, as well as a lot of work that goes into a successful fix and flip. Understanding what makes an ideal fix and flip house and then finding it isn't always easy. A borrower needs to do a good deal of research and get the right financing for the best deal.
Trust deed loans are not a new phenomenon. However, they are growing in popularity. It is a great way to earn passive income with little hassle. Smart investors always do their research. However, there is always more to learn. Here are 5 things you never knew about trust deed loans.
4 Tips for Finding the Right Hard Money Lenders for Your REI Team
Posted by Ken Meyer on Tue, Jun 16, 2015Fix and flip investing is part art form and part business venture. As a real estate investor, you know the importance of doing your homework when choosing a fix and flip property. You have built relationships with realtors, property inspectors, contractors, and others in related industries to maximize your chances of success. You understand the proper way to figure appropriate ARVs for each property you consider. And you have a real eye for finding those diamond in the rough properties that others overlook when it comes to property searching.
Flipping a house is a very profitable endeavor if you know what you are doing. As with most highly lucrative opportunities, it is also risky. Being well-informed is the best way to ensure success. One wrong decision can lead to a break even situation, or worse, leave you with a loss. Here are a few surefire ways for your fix and flip project to fail.
Both first time and experience home flippers, can find useful information on the internet, but where to look? If you start with a search engine, who knows where you will end up? Go ahead and try it. Type in "house flipping" and see what happens. Something like thirty-three million results. How do you sift through all that? For those who are seeking advice, tips, and tricks for the do-it-yourself home flip, here are three of the best house flipping blogs to lend you a helping hand.
There is a sense of urgency with hard money loans. For whatever reason, such as an interruption of funding or a quick take down of cheap property, a hard money loan usually needs to be acquired quickly. It is important to help a lender feel comfortable and to help a lendee receive funds as soon as possible. To do that, here is the ultimate checklist for you and your hard money lender.