Hard money vs Private money – what is the difference?
Part of the confusion surrounding this topic is there is no hard and fast “rule” as to how the terminology is used. There isn’t really a definition of hard money [...]
How many rehab projects go over budget?
I was speaking to some new rehabbers recently and discussing that rehab projects go over budget on a regular basis (singles or multis, it doesn't matter), and that they should [...]
5 Commonly overlooked costs
I was speaking with a new borrower today, and he asked me what he might have overlooked when calculating his carry costs and borrowing hard money. Here are a few [...]
6 Delays That Cost Big Money
Here are a few costly delays that my customers have experienced recently when rehabbing a fix and flip Gas companies frequently won't install or reactivate lines in the winter If [...]
Don’t Lose Your Deposit With Online Auction Purchases!
Hubzu and Auction.com have hidden pitfalls! Online auctions are a popular source of deals, but they are not without their challenges. Here is a common one: Once you win the [...]
When Is Hard Money the Same as Cash?
The short answer? Never, it’s a loan. The “how it works in real life” answer? It depends. A few short years ago, a “cash” offer meant “This offer has no [...]
What Part of “In Arrears” Did You Not Understand?
When you, as a real estate investor or rehabber, take out a construction or rehab loan, you are probably going to come across the phrase: Draws taken in arrears of [...]
The Grief to Revenue Ratio
What tips the scale on your Griefometer? I heard this term for the first time last week and liked it enough to bring it to you. If I’m a little [...]
Protecting Your Capital: Who Gets Paid First?
If you are investing in real estate with any frequency, sooner or later you will be required to put actual cash into a deal. If you are investing using other [...]
Start Your Deal Backwards
I want you to begin your deal at the end – yes, do it all backwards! Why? Because how can you know how much to pay for a property, if [...]