Profile cover photo
Profile photo
Investmark Mortgage - Hard Money Lending
5 followers
5 followers
About
Posts

Post has attachment
Welcome to our Investor Spotlight. This is where we share the insights of others with you, so you can benefit from them.

We asked Jarrod the following questions:
1) When and why did you start investing in real estate?
2) How do you find properties?
3) Why do you use hard money, and how has it benefited you?
4) Describe your biggest success/failure so far and what did you learned from that experience?
5) What advice would you give a new investor?

See how he responded to these questions here.

https://www.dropbox.com/s/a8wp71z4fqrr6ba/Jarrod%20Roecker%20-%20Investor%20Spotlight.pdf?dl=0
Photo
Add a comment...

Post has attachment
Gross Profit ≠ Net Profit
Before buying any deal, it's obviously important to know how much money you are going to make. By that, I mean the actual net amount you are going to get at the sale closing.

If you are on one of the many wholesale email blasts, you know that some of these deals are marketed with a gross profit number, which doesn't factor in any of the costs of the sale.

Even worse, many investors forget one or more costs they will incur at closing, which will certainly lower their profit. There are five costs that must be factored in every sale that new and even experienced investors forget.

Here is a quick list of what you need to determine your net profit in every deal.

https://www.investmarkmortgage.com/blog/five-costs-investors-typically-forget/

If you need assistance with a specific deal, feel free to contact us. We look forward to working with you.
Photo
Add a comment...

Post has attachment
Mike Hanna just wrote his first book on real estate investing! Why do you care? Here is just some of the feedback on it from investors and industry experts who have gotten a sneak peek:
Easier Than You Think is a must-read for anyone who wants to become an informed, successful real estate investor. Mike does a masterful job of laying out the roadmap to build a profitable real estate portfolio. - R. Allen
Mike Hanna's experiences and successes speak for themselves. Now he's paying it forward by giving you straight-forward, surefire insights to succeed as a real estate investor. - C. Breault
Before you spend money buying multiple books on real estate investing, or spend thousands on seminars or online programs, read this book!
You can learn more about Easier Than You Think at www.mikehanna.com or on Amazon.com.
Photo
Add a comment...

Post has attachment
Lower Property Taxes = Higher Returns
The property tax season is upon us and by now most appraisal districts in Texas will have their notices distributed.

I just received several notices at my office today and all of my assessed values were increased!

One of the most valuable things you can do whether you are flipping or buying rentals, is protest your property taxes.

I have literally saved tens of thousands of dollars protesting property taxes over the years and I can show you how to have success doing it here: https://www.dropbox.com/s/ceb3jgzry0yc7eu/propertytaxprotestingApril2017.pdf?dl=0. 

Photo
Add a comment...

Post has attachment
If It's Too Good to Be True....
We have all heard the saying, “if it’s too good to be true, it probably is.” But if you are new to real estate investing and hard money lending, you can easily be fooled by ads offering lower interest hard money. Even some experienced investors think they will save money by using a lender who advertises sub 12% interest, when nothing could be further from the truth.

Hey, I get it. When I am looking for a real estate deal, I want to pay as little as possible for it. So why wouldn’t I do the same for my financing? There is absolutely nothing wrong with this approach, as long as you are getting exactly what was advertised.

If this sounds confusing, take a few minutes to read my latest blog post where I expose the fallacy of so called lower interest hard money, and the fact that most of it is bait and switch.

https://www.investmarkmortgage.com/blog/seduction-cheaper-hard-money/
Photo
Add a comment...

Post has attachment
Welcome to our Investor Spotlight. This is where we share the insights of others with you, so you can benefit from them.
We asked Charley the following questions:
► When and why did you start investing in real estate?
My wife and I had a little money saved and it was in a cash account in the bank making a lovely 1.15%. We were looking for something with a good overall return. I have a home that I have owned for 20+ years and have rented it to a friend and his family, so I got to taste the advantages of someone else paying the mortgage while putting some cash every month in my pocket. After doing the math, it sure did make sense to have a few more rental properties. We took the Lifestyles Unlimited training in October 2015 to gain some wisdom and knowledge. We bought our first rental property in March of 2016 and a 2nd property in April 2016. To me it was basically “transferring” the money from a money market earning 1.15% to rental property earning over 12%. Our passive income goal is to pay ALL the bills plus some extra – approximately 9 properties to start.
► How Do You Find Properties?
I have two sources for properties. I am on a wholesaler’s email blast, and I have two real estate agents on the lookout for distressed deals. This has worked well for finding deals. I have built a spreadsheet, and along with some quick internet searches, I can analyze a property in about 8 minutes. I have personally sat with each real estate agent and the wholesaler to make sure we understand each other, goals, what I am looking for, etc. I intend to branch out into other opportunities soon.
►Why do you use hard money, and how has it benefited you?
Investment properties are not an emotional event and should never be. They are a business and basic math. To be able to swing a quick close and borrow against a future value (ARV), hard money is the way to go. Since I am looking for distressed properties for a way-below-market value, hard money has been the best leverage for me. Hard money is quick to close, easy to obtain (minimal paperwork), easy to work with, and also preserves my cash for the next opportunity.
► Describe your biggest success/your biggest failure so far. What did you learn from the experience?
All of my properties are a success. Calculating the market increase, debt reduction, and the monthly cash flow after some maintenance and repairs, we are over a 22% return on all money invested. It sure does beat the 1.15%, and I own the property – it’s backed by something tangible. I have two lessons learned. First, the actual estimate of rehab is ALWAYS lower than it actually is. During rehab there will be things found – AC, plumbing, roof, foundation, lawn etc. Make sure there is a little room in your numbers for the unknowns. The second lesson is to rehab for success and don’t cut corners. Rehab the home to be mechanically sound and maintenance free for years to come. If you can’t do that with the math then the property is not an opportunity. On my 2nd property I didn’t replace a few of the items that are “normally” replaced – disposal, old oven, old microwave. I did this to save about $1200 on the rehab. That was a mistake. I have since replaced the disposal after it leaked all over the cabinet and had to repair that. I have replaced the oven controller and replaced the microwave. I have paid more and inconvenienced both the tenant and myself. Do the math, create a good property, enjoy the passive income!
► What advice would you give a new investor?
Do the math, remove the emotion and start! Learn for those that have done it, ask 1000 questions, create a network you can trust – hard money, refi, rehab, handy man, sprinkler man, plumber, electrician, etc. The process is work, but the payoff is great.
Photo
Add a comment...

Post has attachment
Join Investmark Mortgage at the Think Realty Expo on April 29th! Enter IMM for 20% off when you buy your tickets!
Photo
Add a comment...

Post has attachment
Evaluating a Deal Starts Here

In my last blog, I discussed the value of getting an appraisal. But most of us want to be able to determine the ARV prior to ordering one.

Too many investors, especially in this market, are looking at the highest comp and proclaiming it's the value. If you are doing this, you are not alone.

Depending on the market you are in, it can be complicated to determine the ARV. However, if you follow these steps you will have much more success in getting closer to the value.
Add a comment...

Post has attachment
The Real Value of an Appraisal

Many hard money lenders and private lenders do not require an appraisal, which some investors view as a beneficial cost savings rather than a risk mitigation strategy in their deal.

When I hear investors say: “I just looked at the comps and the value is $200,000,” or “My lender doesn’t require an appraisal and I’m really trying to keep my costs down in this deal,” or "I don't have time to do one," my red flags go up.

Read this post to see why there is no substitute for getting an appraisal, and when done properly, is the best money you will spend in your deal.

https://www.investmarkmortgage.com/blog/real-value-appraisal/
Photo
Add a comment...

Post has attachment
We are rapidly approaching the home buying season in Texas, and this spring may be one of the best ones yet. If you are going to flip a house, don't waste your time trying to sell it yourself.

The main reason investors sell FSBO is to save money on commissions. I'm here to tell you that in most cases, it will cost you more.

Check out my recent blog on this topic to understand you can make more by listing your deal.

https://www.investmarkmortgage.com/blog/three-reasons-fsbo-mistake/
Photo
Add a comment...
Wait while more posts are being loaded