Hard Money Blog: Invest, Revitalize, Create, Prosper

Credit Inquiries: Hard vs. Soft Pulls

September 11, 2024 by Kyle Sennott Leave a Comment

A businesswoman with a magnifying glass examining a credit history

Our hard money loans have a few underwriting requirements. For example, we don’t verify income and are not credit score-driven. That does not mean that our borrower’s previous payment history is irrelevant to us. We do take a look at their credit history – even if we are aware that it might not be stellar. Most of our borrowers are perfectly fine with it, but a few are hesitant. One of their concerns is putting an inquiry on their credit. “Do you do a hard pull or a soft pull?” they ask. Let me clarify some confusion about hard and soft credit pulls and give real-life examples of each.

How to make a successful offer on your first investment property

August 7, 2024 by Kyle Sennott Leave a Comment

A first-time investor and her team shaking hands after making a successful offer on her first investment property.

So, you are ready to take a leap with your first investment property. You’ve found a lender, contractor, or even property. You are ready to sign on this dotted contract line… Or are you? I bet hundreds of “what-if” scenarios are running through your head right now. Am I overpaying? Is the seller hiding something? Will my lender fund the transaction as they promised to? Would I lose my deposit if they don’t? These are all legitimate questions. These are the risks inherent in real estate investing. These risks are especially high for new investors, those who have yet to gain experience in buying, renovating, and selling a property.

How to Lower Your Taxes with 1031 Exchanges

July 17, 2024 by Kyle Sennott Leave a Comment

Smartly dressed investor holding 1031 Exchange sign. A newly renovated home is in the background.

As a real estate investor, you work for months, getting up early, working on weekends and holidays, and taking all sorts of calls after hours. Not only you don’t get paid, but also spend a wazoo of your own money with the hope that one day you will make a profit. And when that day comes, guess who is knocking on your door? It’s Uncle Sam, and he wants his share. This is why every rehabber owes it to themselves and their families to know how to reduce their taxes. Reducing taxes directly increases the net return on investment. One of the best ways to do this is a 1031 exchange.

Radon Testing for Real Estate Investors

July 16, 2024 by Kyle Sennott Leave a Comment

Radon testing for flippers and landlords

Radon levels might not be high on the list of concerns of a real estate investor trying to decide whether to invest in a particular property. Title issues, renovation budgets, the accuracy of the after-repair value, and real estate market trends should all supersede it. However, when the dust settles, and the decision has been made, you need to ensure radon-level compliance regardless of whether you plan to sell your property or hold it as a rental. For this reason alone, any savvy real estate investor should know local radon regulations and how to address them.

How to Estimate Your Renovations Costs Accurately

June 13, 2024 by Kyle Sennott Leave a Comment

A real estate investor estimating renovation costs

When we evaluate a transaction, we look at several numbers. Each is equally important, and together, they determine how much profit our borrower will make. The first two numbers are the property prices: the price you are paying to purchase it in its current as-is condition and the price you are hoping to sell it for after your renovations are completed. These numbers are like the bookends supporting your entire project. The sturdier they are, the less likely the project will collapse. But what’s in between them is also important: your renovation costs. Estimating renovation costs accurately is crucial to achieving your desired return on investment. Unless you have vast construction experience, it’s not easy. However, if you have discipline and attention to detail, you can learn to make pretty good estimates by following the footprint below.

Solar System Guide for Real Estate Investors

May 29, 2024 by Kyle Sennott Leave a Comment

Recently, more and more of our borrowers have been encountering headaches and delays because a property they are trying to buy has a solar system. If you are a real estate investor purchasing a home with a solar system, you need to be on high alert for potential issues from the get-go. Some of these issues can be quickly resolved. In fact, you might not even notice them – your title company will quietly handle them. Others might be a literal death knell for your transaction. The challenge of those solar systems is that you will never know which one is which – until you dig deeper.

Hard Money Blog: Invest, Revitalize, Create, Prosper

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