New Funding Resources 
As a local hard money lender, we’re all about sharing our expertise and helping you make money in real estate. We love both learning – and every real estate transaction is a unique learning opportunity – and sharing life’s lessons. Many of our borrowers are the first-time flippers and the vast majority will make respectable profits rehabbing their first property. Yet, real estate investing is not for everyone. Here are the four tell-tale signs that private lenders like us use to differentiate serious first-time investors from those who might not be worth the risk.
Hard Money Blog: Invest, Revitalize, Create, Prosper
Should I Pay Cash for an Investment Property?
In our previous blog, we’ve addressed one of the most frequently asked questions: Is a hard money loan considered cash? Now that we’ve covered when a hard money loan is equivalent to cash and why, it’s time to discuss their differences. In other words, should you pay cash for an investment property or should you borrow money instead? To come up with a strategy that is right for you, let’s discuss the advantages and disadvantages of each way.
Recently I spoke to a brand-new investor who asked us to look at a loan scenario for him. A deal he wanted to discuss was not particularly strong. In fact, my numbers showed him making just over $6,000 in profit. After we talked more, he confessed he was thinking about purchasing the property all-cash, to “test the waters” and “eliminate additional expenses.” Were he to bypass a lender and pay his way with his own cash, his profits would increase substantially.
Is a Hard Money Loan Considered Cash?
The DMV market is full of real estate investment opportunities that state: Investor Special. Cash Only. This “cash-only” requirement is the driving force behind the most common question about our industry: Is a hard money loan considered cash or not?
I understand the source of confusion. Cash implies a certain amount of money that you already have in your possession. In contrast, a loan means that you’re using borrowed funds because you either don’t have cash or choose not to use it. Hard money loan is not cash, but there are instances when it’s considered its equivalent. One of those instances is making an offer on a distressed property.
How to Manage Renovations That Require Permits
In our previous blogs, we discussed renovations projects that might require getting permits as well as the situations when you can get away rehabbing a property without them. Getting permits will almost inevitably slow you down. It will also add an extra layer of expenses to your budget. On the other hand, not getting permits when required increases your risk and, ultimately, your liability. A building inspector might not only halt your whole project until the right permits are in place but also ask you to bring your existing renovations up to code. However, the focus of this article is not to dwell on when to get permits but how to effectively manage renovations that require permits.
Estimating Renovation Costs: Major Expenses That Affect Your Budget
Mark Twain famously quipped: “Nothing in life is guaranteed except death and taxes.” As real estate rehabbers, we face that uncertainty every day. Our profit calculations are based on the myriad estimates that depend on factors beyond our control. Learning to manage this uncertainty is learning to manage and minimize your risk. Today I want to talk about one component that is especially tricky to control – your rehab costs. Estimating renovation costs correctly is the key to your success as a real estate investor. Yet, these four costly items are often overlooked and, as a result, may significantly reduce your profits.
Get Free Advice From These Real Estate Experts
In our previous blogs, we’ve talked about impracticalities of paying thousands of dollars to attend a real estate seminar or get access to a real estate guru. The best way to save money is to stop spending it when you don’t have to. So here is the list of real estate experts that are ready to impart their hard-earned real estate wisdom without emptying your valet.
