Hard Money Blog: Invest, Revitalize, Create, Prosper

Eleven Most Common Real Estate Investing Mistakes

May 16, 2023 by Kyle Sennott Leave a Comment

A real estate investor who just made a mistake

I have recently stumbled on online advertising that promises “a passive income of at least $5,000 a month” after buying their magic real estate investing and rental program course. Guaranteed, and no experience is required. Really? I have been investing in real estate for years and have a decent portfolio of properties right here in Montgomery County, but I am yet to see numbers like this. Yes, my real estate portfolio’s value increases year-after-year, my mortgage balances go down and it’s an integral part of my retirement plan, but I am not yet relying on it to generate any income, let alone “passive.” So what gives?

How to Price Your Rehab to Maximize Your Profit and Minimize Your Risk

May 12, 2023 by Kyle Sennott Leave a Comment

Pricing Your Rehab Right: Practical Tips and Mistakes

Pricing a renovated property for sale is a delicate balance between setting a fair price and ensuring a good return on investment. The price of your rehab should reflect such factors as the current market conditions, the location of the property, the quality of the renovation, and the features of the property. As a private lender in Maryland, I do understand that is often easier said than done. We’ve seen too many borrowers whose properties linger on the market with very little activity, while other investors hit the ball out of the park again and again with the spot-on rehab pricing strategy. So let’s try to unpack the most common mistakes and the best practices for pricing your rehab just right.

Insurance for Real Estate Investors: How to Get, When to Get It, and How Not to Waste Money With It

March 13, 2023 by Kyle Sennott Leave a Comment

Builder's risk policy protects real estate investors from all sort of things. — The contractor got crazy with the hammer. But our borrower had a Builder’s risk policy to exorcise the evil.

Let’s talk about a hard money loan requirement that typically gets little attention – property insurance. Because the appropriate insurance is an essential condition to a private loan closing, the process of obtaining that first coverage is relatively smooth. Once we guide our borrowers through what kind of insurance they need as real estate investors, they quickly and easily purchase an appropriate policy. However, it’s when that initial coverage expires, the issues often start.

How to Stay Within the Rehab Budget

December 28, 2022 by Kyle Sennott Leave a Comment

Margins on a rehab project can be razor-thin, so it’s essential to set a realistic budget and stick to it. Underestimating the cost and scope of renovations could be the difference between turning a tidy profit and taking a financial hit. Spending more on a rehab than you anticipated will certainly cut into earnings, especially if the property is slow to sell once all of the renovations are completed. Going over budget is all too common in the house-flipping industry. Here are some house-flipping tips to ensure you get the best return on your real estate property investment in Maryland, Virginia, and Washington DC.

2023 Home Design Trends All Real Estate Investors Should Know

December 21, 2022 by Kyle Sennott Leave a Comment

Trends come and go, and savvy rehabbers balance new styles with timeless classics to appeal to different types of home buyers. While incorporating all of the latest trends simply isn’t achievable on a fix-and-flip budget, real estate investors who know the up-and-coming home décor styles have a distinct advantage when it’s time to sell.

Roofing Materials: Pros and Cons of Each Type

November 10, 2022 by Kyle Sennott Leave a Comment

When the signs point to a new roof for your investment property, you need to choose the appropriate roofing material for the renovation. Instead of simply going with the roofing material currently on the house or rental, it makes sense to evaluate the options.

When selecting a roofing material, consider the following five factors:

Hard Money Blog: Invest, Revitalize, Create, Prosper

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