If you are getting started on your first real estate investment, then we have broken down all the important and integral steps in order to succeed. Think of your successful investment property as a whole, and try to picture it as a wound-up, moving clock with numerous gears that fit together like the pieces of a puzzle.
First, be sure and read the first part of this blog and see what steps you should take first.
3. The funding for your investment is the fire behind your steam.
To profit off your investment, you need the right financing behind the scenes. Investors can use different strategies for their funding, and there are plenty of options that will best fund your particular situation.
- Cash funding: if you have the cash in your bank account, then you can just cut a check. Using this method is possibly the easiest solution, but not everyone has this option. It’s a good idea to first calculate your net worth and figure out your cash flow to determine if this is right for you.
- Conventional bank financing: some investors enlist the help of a bank to lend funding for their flip. However, many banks refuse to provide a loan for house that needs repair. While not common, a few lenders will approve any property, and are designed to work with flippers. If something like this is what you had in mind, then we suggest the following option.
- Hard money loan: also known as private loans, rehab loans, bridge loans and construction loans, are available to purchase and repair a property. Hard money loans do not follow conventional standards like banks or mortgage brokers, and allow you to maintain maximum leverage for your investment and secure funding for repairs.
It’s important that you finalize your funding source before you shop for an investment property. We understand that speed is critical for the real estate investment market, but without good funding for your house rehab, you won’t profit in the end.
4. Persevere, persevere, persevere!
Finally, and similar to our first point, perseverance on your priorities will earn you profit in the end. You will have to stick to your guns and power through many problems, but it’s important to remember the payoff is worth it. You’ve already decided on your goals and drawn up a game plan to achieve them, now it’s time to follow through. Don’t stop your hard work until you have a product you know a will make a buyer happy. If the buyer is happy, then you are happy, and your bank account will be a lot happier.
We have the key to wind your clock, so let’s put all the pieces in motion.
You have all the integral parts of your working machine, and now is the time to make it a moving masterpiece. You’ve laid the foundation for the successful construction of your clock, now Sherman Bridge is the all-important key that winds everything into place.
Sherman Bridge can work with every type of investor, and will even work with first-time flippers like you! With complete know-how and understanding of every kind of investment strategy, Sherman Bridge has the tools you need and the resources you want.
Such a connection can be just the ticket for you to succeed at these crucial first steps and pave your way to a profitable investment. Sherman Bridge offers multiple options for funding, and will give you all the tools you need to get started!
Get your 30-second pre-qualification, or read up on Sherman Bridge Lending here.