Acquiring rental properties provides an opportunity to earn great cash flow, residual income, and wealth accumulation. This opportunity is increased when an investor is able to source a distressed asset in need of repairs and improvements, which are the result of previously neglected properties, foreclosed assets, fire damaged assets, estate assets or other similar scenarios.
The question then becomes, what is the best way to finance these purchases to maximize your returns? We’ll look at some conventional and unconventional methods for financing and how you can make them work for you. If you want to discuss a possible transaction in greater detail, please do not hesitate to submit an application or contact us directly.
FIX AND FLIP
Fix and flip through conventional financing typically doesn’t work, because it often takes too long to close with a bank or the bank won’t finance the distressed asset. When sellers are looking to get rid of a property, cash is always king, and hard money lending can provide you with the assets needed to acquire the property within days.
Milwaukee Hard Money can help you leverage multiple transactions, while conserving your cash flow. We finance based on the After Repair Value (ARV), up to 65%, which allows for additional leverage. Take a look at our video as we compare conventional financing vs. hard money lending through Milwaukee Hard Money.
WHOLETAILING
With Wholetailing, investors have found an opportunity to capitalize on a below market-value purchase price for an asset, with the intent to perform minimal updates or changes before selling the property for a profit.
In most instances, ownership of these assets is intended for a short period of time, with a quick purchase and sale timeframe desired by most investors. Utilizing hard money lending provides our clients with the cash they need, often within days of submitting a request, to quickly acquire the property and help leverage multiple transactions, while conserving your cash flow. We finance based on the After Repair Value (ARV), up to 65%, which allows for additional leverage. Check out our video above highlighting a recent example from one Milwaukee Hard Money’s clients.