Borrowing Archives

What are Points on a Hard Money Loan?

For investors looking for short-term funding, hard money loans—also known as private money—are essential. Investors work hard to source and get a property under contract. Then they need to acquire financing. Investors might have cash on hand for a down payment and for the other fees associated with paying off the seller, but they’ll need another party for help to fill the gap in their funding. This is where hard money lending comes into play. Hard money lenders fill an essential role in real estate investing. Understanding the fees in closing a deal is a must. ...

By Charlie Palmer|2021-11-05T09:47:40-07:00November 5th, 2021|Borrowing|

21 Questions to Ask a Private Money Lender

Investing in real estate requires trust. Trust in your process and trust with others. Team work makes the dream work, after all. But before building trust you need to know the people that will be part of your bigger "team." One of these team members is your private money lender. To help facilitate that relationship, we've provided questions to ask your private money lender. This guide will allow you to review lenders and fund you deal in confidence. 1. How Experienced is the Lender in Private Money Lending? As far as questions to ask a private ...

By Charlie Palmer|2021-11-03T15:03:14-07:00October 22nd, 2021|Borrowing, Fixing, Flipping|

Non Recourse Fix and Flip Loans

Did you know that you can use your self-directed IRA to get Non Recourse Fix and Flip Loans? There are many benefits to using your IRA as a tool to buy and flip. These loans are referred to as “Non-Recourse” because they give you liability protection. Read on for more... Use a Self-Directed IRA for Non-Recourse Loans For starters, what is a self-directed IRA? You might be thinking, “I have an IRA, can I use it to invest?” Let’s answer a few questions and you’ll have a better idea about what you can do. A self-directed ...

By Charlie Palmer|2021-11-03T11:42:04-07:00September 27th, 2021|Borrowing, Fixing, Flipping|

Finding Private Funding for Real Estate Investors

Lee Arnold, CEO and founder of Cogo Capital, shares pointers on finding private funding for real estate investors Attract Private Funding for Your Real Estate Deal Investors often ask the question, how do I find funding? What investors should really be doing is allowing funding to find them. Let me explain. Funding, like so many things in life, is about attraction. We get who and what we attract. It's the law of attraction and it works in every aspect of your life, including finance. So how do you “attract” funding? Reduce Your Risk Profile ...

By Charlie Palmer|2021-11-03T11:08:26-07:00September 10th, 2021|Borrowing|

Jumbo Mumbo: Don’t Size Yourself Out of Success

2020 is going to be a big year. It is time to set your sights high. Doing big things this year does not mean buying big, it means selling big. You will do yourself a tremendous disservice if you pursue properties that are in the jumbo category because only jumbo lenders can participate in this segment of the market and that represents only about 4 percent of the market. The Cap Now, if you pursue properties where your After Rehab Value (ARV) does not exceed the FHA cap for your area, you’re more likely to get ...

By Lee Arnold|2022-08-12T15:07:55-07:00January 8th, 2020|Borrowing, Getting Started, Property Evaluation|

Think Inside the Box: Profit-Maximizing Loan Criteria

We are often encouraged to think outside the box. Innovative thinking can often bring long-term returns but, in real estate, at certain times in the market cycle, there is a place that brings consistent and timely returns. You can think of it as the “box.”

By Lee Arnold|2021-09-10T19:15:05-07:00November 26th, 2019|Borrowing, Entrepreneurship, Fixing, Flipping|

Not So Scary . . . No Fear Funding

The one thing that seems to block most people from realizing their dreams is fear. To many, the scariest part of real estate is securing funding. New investors look at lenders as haunted houses and dread the process of funding their deals. Most fear is born of not knowing. Our goal is to provide you the knowledge you need to approach real estate financing unafraid.

By Lee Arnold|2022-08-12T15:09:17-07:00October 16th, 2019|Borrowing, Communication, Getting Started|

10 Traits Private Money Lenders Want To See In You

What’s a real estate investor’s favorite thing to see in you, the borrower? Themselves. Rich and Poor Priority Differences Articles are swarming social media feeds referring to the differences between the poor and rich. The poor watch more hours of television (reality television at that), while the rich maintain a to do list, wake up 3+ hours before work, regularly read, network, and listen to podcasts/audiobooks on the commute. When you walk from first class to coach on your flight, you'll often notice the people in first class on their laptops- with spreadsheets open or ...

By Lee Arnold|2022-02-22T15:11:59-08:00June 7th, 2019|Borrowing, Fixing, Flipping|

OPM: How to buy houses with none of your own money

Sounds crazy right? Well it’s completely achievable with the help of OPM. Other People’s Money How do you access OPM? You could reach out to everyone you know and try to borrow money from them… but

By Lee Arnold|2022-01-24T16:46:55-08:00April 12th, 2019|Borrowing, Fixing, Flipping, Getting Started|

Know the Rules: 1031 Tax Exchanges, Part 2

Know the Rules, Maximize your Exchange

1031 Tax Exchange for the Modern Investor: Part 2

If you’re to the point in your investing career where you’ve started buying and HOLDING, then you may need to learn a thing or two before you start shuffling your properties around. Instead of flailing around and ...

By Lee Arnold|2022-02-01T11:34:37-08:00October 21st, 2018|Borrowing, Fixing, Flipping, Property Evaluation, Wealth|