Real Estate Investing 101: Advanced

You are now a real estate investor. You may own several properties and have reserves that you want to keep using for buying and selling real estate. We’re going to touch on a few items to consider as getting this deep into real estate is very specific for each situation and investor.

Leveraging money – As you build equity in your properties, you may want to set up lines of credit on them. Typically a bank will give you 70-80% of the equity on a line. This allows you to tap into that equity to purchase or rehab other properties. Keep in mind that you will be paying interest on any money you use and that it will have to be paid back at some point.

Hard money – You may need to find a “hard money” lender who can provide you fast cash for purchasing a property. These loans are usually short term with high interest rates. They can be helpful when you find an amazing deal that you are going to turn around and resell or refinance. It’s important to find a reputable lender through a referral in these situations.

Cash-out refi – As you come across great deals, you may be able to pick up properties that you will be able to pull your money out of after capital improvements are made or rents are increased. Typically, you would pull out 80% of the value and leave 20% in for the downpayment of the new mortgage. This only works if the property value greatly increased from the purchase price. Keep in mind that there is also a seasoning period before a bank will give you the refi.

Buy & Hold or Flip – Each deal you find should be evaluated to see which use is best. Is it better to buy and hold as a rental property, or better to rehab and flip? This also comes down to your goals. If you are looking for long-term returns, then holding is better. If you need to make some cash now, a flip may be best. In either situation, you need to know how to figure all of the costs to purchase, rehab, hold, sell, etc. 

If you have questions about real estate investing, please reach out. I’m happy to meet and discuss your specific situation.

YOU MIGHT ALSO ENJOY

7 Don’ts for Buying a New Construction Home

With limited inventory for pre-existing homes, some buyers are turning to new construction. A new home could be exactly what you’re looking for and has many benefits. What could be better than brand new! Here are some things you may not have thought of. Don’t be caught unaware when you are considering new construction.

7 Secrets to Sell Your Home Fast!

You want to sell your home fast… and for the most money! You may be upgrading to a bigger home, relocating to a new location, or even downsizing for retirement. Whatever the case, once you’ve made the decision to sell, you want the best outcome! Here are seven secrets to get your home sold fast and for the most money.

How Quickly Will My Home Sell?

If you’re thinking of putting your home on the market, you are probably wondering how quickly it will sell. This depends on several factors! First, we have to look at what’s happening in the local real estate market to determine if it’s a home buyer’s market or a home seller’s market. Then we consider the condition of your home, any upgrades you’ve done, and any repairs that need to be made. Then we look at your specific location, neighborhood, and yard/land. All of these factors influence how quickly your home will sell.

Why Curb Appeal Matters! From Sale to Sold

You want the best return on the sale of your home that you can get! The first step is creating great curb appeal so when buyer’s pull up they are excited to enter your home. Then you want to stage your home to create as much buyer appeal as possible. Check out these tips to make buyers fall in love with your property!

Thinking About Buying?

Thinking of buying a home? There are so many steps in the process that it can feel overwhelming! But don’t worry 😃 We got you covered from the very first step until you have the key to your new home in your hand! Check out this video to learn how.