Hard Money Makes the Flip Possible!
Real Estate Investors use Hard Money to make deals happen. Hard Money Lenders like the higher interest rates with flips and understand how value is returned to a property. That doesn’t mean they like Risk.
Find Out More!
Finding Hard Money Lenders
Hard Money Lenders Pay to be Found on Scotsmanguide.com
Be Professional When Working with Hard Money Lenders
Skin in the Game
Make sure you receive permission to sublet the property. Put it into the contract and disclose what you are planning with the owner.
Listen
Hard Money Lenders have seen a lot of deals. Their questions may indicate that they see a risk or problem with your analysis.
Keep Looking
Hard Money Lenders may not be able to fund all the deals they like. So keep looking and be persistent.
Lending Programs
Some Hard Money lenders have multiple lending programs. Review them all and see which program is the best fit. For example, you may find the your flip may work better as a rental. The right loan can make it easier to choose.
Protect Yourself
Use a Legal Entity such as a LLC to secure the loan and buy the property.
Be Confident!
Just because it’s your first flip doesn’t mean you have to sound like it’s your first flip. You probably shouldn’t talk to a lender until you can sound confident. Practice with a friend!
Answers to Your Questions
Fund with Corporate Credit
With Corporate Credit you can pay first and last month’s rent, make deposits, and handle any day-to-day cash flow requirements.
Divide and Conquer
With a single family home you may be able to divide the property into 2 or more rental units. Do the research and see what your market rewards.
Manage Risk
Use a legal entity like an LLC and put insurance in place. Protect yourself and your landlord.
Taxes
Short-term rentals and some cities are still learning how to tax you. Pay attention to the regulations and build compliance into your financial plan. The government always wants their share and they will regulate you!
Use Business Builder Funding
Business Builder Funding is my friend Tony’s business and your resource in obtaining corporate credit. They have funded over 18,000 startups and raised over $1 Billion since 2008.
Corporate Credit can give you the ability to secure multiple properties and really move quickly into this opportunity.
Rental Ready
Make your property look more like a hotel. Have the ammenties that a business person needs to be comfortable and have a great night’s sleep.
Seasonality
Know your market. If rentals go up or down based upon the time of year then you need to be ready for it. Use your Corporate Credit Line to get you through any low months and until you build up your reserves.
Use a Manament Firm
Property Manager exist to make life easier for landlorts. The same exists in the short-term rental industry. If you don’t have the time then you can use a property manager. Just make sure you recognize the added expense as you put your financial plan together!
Get Great Reviews
Bad reviews will kill your occupancy percentage and make the property unprofitable. So provide the service that generates great reviews.
Tony’s Team
The Business Builder Funding team understands exactly what banks, lenders, and investors are looking for before they lend to new and existing businesses. We know what it takes to secure funding and turn an idea into reality.