Another Look at What’s Selling

Opportunity Where You May Least Expect It

We still haven’t seen the drop in pricing many expect to see given the current stay-at-home situation. In our last post, we talked about how real estate is an essential business and that those who are forced to relocation during this time will be one of the groups in need of housing. However, we didn’t mention what kind of housing. What’s still selling? Vacant properties.

Homes that have been empty for the last few months due to construction, rehab or flipping are still being sold. We suspect it’s because these homes see more traffic. Buyers feel slightly more comfortable touring a home that’s not been lived in since the start of the viral spread. Our loan officers are still having uplifting conversations with investors who are still able to move properties off the market and expect to continue to be able to do so until the supply increases and the values decrease.

Remember when you craft your marketing messages for your vacant properties that what is often seen as a disadvantage, is now a major advantage! For more information, question or funding contact us!

Residential is Essential

A Positive Spin on the Current Market

Real estate agents and Realtors® alike are considered essential businesses. While the media, experts and gurus alike discuss a potential economic decline we’re choosing to focus on the positive. Here’s some potential we see for the residential market.

Our good friends and Realtors® located in the Midwest just posted three new listings this past week and received an accepted offer on a listing in just under a week on the market. The key? Affordable options. The job market will play a heavy factor in forcing people to relocate for new opportunities. The result will make house hunting not so much a luxury, but a necessity.

We’ll likely see the most affordable options being scooped up off the market first. This is great news for investors and flippers alike.  Make smart design decisions that provide functionality, aesthetic and keep your overhead costs low. Remember to market your listings across all your social media channels. We’re seeing a dramatic increase in social media usage while we all practice social distancing.

Contact us for assistance funding your next residential flip.

We’re All for, “As Is.”

Attention Realtors

Attention realtors, we want to see your “as is,” listings! Lend Some Money works with property owners, flippers and investors who are seeking out opportunities to scoop up “as is listings.” Our clients both new and experienced understand the potential with a listing that needs a little TLC and therefore, may be priced slightly below market value.

Our clients make great buyers for your “as is” listings. Many of them come to the table with cash in hand and ready to close quickly! How is this possible? As a hard money lender, we provide funds for the purchase price and renovation of the property. We have hundreds of investors eager to expand their portfolios and your listings may help!

If you’re working with a property that is being sold, “as is,” bank owned, needs to sell quickly, needs repairs or simply would make a great investment property, (think long or short-term rental) please send us the listing! We’ll use our resources to help you get your property in front of professionals who are ready now!

Contact: Michael Barker:

We Want to Take This Relationship Long Term

You Asked for Longer Terms, We Listened now offers solutions for long term needs on rental properties. So, whether you’re refinancing after renovating a property, or purchasing a property that is rent ready, we can help you get the financing you need for long term income.

Due to high demand for this product we offer rates starting at just 4.75% with no personal income verification needed. Plus, this flexible product allows you to have some say in the relationship! For example, there is no limit on the amount of homes you can hold and you can rent the property in a multitude of ways, as a vacation home, an Airbnb rental, or even via monthly or yearly leases. Build your portfolio your way, at your speed!

Lastly, this long-term product offers up to 80% LTV on the purchase and 75% LTV on a refinance! is dedicated to going the extra mile to get you your next rental! Contact us today.

I’ll Have the LOX

How to write a Letter of Explanation

You may know lox as a delicious topping for a bagel and as hungry as we might be right now, that’s not what we’re talking about. In the lending world, LOX has a different meaning. It stands for, Letter of Explanation and is something you might find useful to help improve your credit score.

Lenders are willing to hear you out and might even go the extra mile to help consumers who can explain previous issues, as well as those who can ensure the issues have been taken care of and no longer remain a threat. So, should you find yourself in a bit of a bind, here are a few tips to help you write your LOX:

  1. State only the facts and be honest.
  2. Include the five W’s of what lead to you falling behind on payment of your bills. This includes, who was involved, what happened as you understand it, when it happened, where it happened and why or how circumstances lead up to the situation.
  3. Don’t be a victim, unless you really were, if that’s the case then describe what you did to rectify the situation. However, if it was your honest mistake, take ownership of it.
  4.  Make a promise, then keep it. You likely made some avoidable mistakes, make sure you learned where you went wrong, how not to do it again and then promise to never repeat them.

For additional ideas on how to improve your credit score check out our previously written blog titled, Achieve Financial Freedom.

Buy Property with Property

Buy Property with Property,

Using Home Equity

Did you know, you can use an existing property that you own as a down payment for a separate property? You may have thought you need to tap into your savings or even retirement to purchase an investment property but that’s not the case! Now technically, you’re using the equity you’ve obtained from the first property, to help fund the investment of the second. This method is a convenient, low-cost way to keep more cash in your pocket.

When you use home equity, you’re often offered some of the lowest rates and best terms on the market due to the fact that you’re using a high value form of collateral – your real property. Lenders can usually provide better closing rates as well. Meanwhile, as you focus on the purchase your investment, your original property and remaining assets have the opportunity to continue to appreciate in value.

So how exactly do you go about this method of investing? You have several options. You may seek a home equity line of credit, also known as a HELOC, or a fixed rate home equity loan. The HELOC is an open-ended line of credit while the fixed rate is more like a second mortgage. With the HELOC option, you have flexibility due to the variable rates and with a second mortgage you’ll have set repayments. This is ideal when purchasing a property such as a rental that doesn’t need work or repairs.

Yet another option is what’s called a cash-out-refinance. With this option you’ll be enabled to refinance the remainder of your mortgage at current market interest rate and you’ll be able to request a loan with a balance for a larger amount which allows you to draw cash against the property at a discounted rate. What you’ve done is create a first lien mortgage on one property and given yourself a lump sum to take to closing. Lastly, if you’re at or above the age of 62 and own a large portion of your primary property you can go the reverse mortgage route. This allows you to use your equity as a lump sum or credit line which doesn’t need to be repaid until you leave the property.

For more information and investment strategies please contact Michael Barker by phone: 860-670-4309, e-mail: or via online chat at:

What Kind of Salary Can You Expect?

Average Salary of a Home Flipper

Most people want to know what their salary or pay grade will be before they accept a position within a company. Often times, when people venture out on their own, they have lofty dreams of working from the beach while earning a breezy six figure salary. While it’s possible, it’s not most entrepreneurs story. For most of us, we get what we give.

That said, we dug up some data from the first quarter of 2019 in an attempt to gain insight on how much the average house flipper is currently making. Turns out, it’s not too shabby.  For starters, more people are jumping on the bandwagon because data shows the number of homes being flipped is up in over half the local markets.

Now we probably don’t have to tell you what this means but just in case, here goes. The increased volume of homes being flipped lead to an increase in loans being given. In fact, it reached a 12-year high and we’re happy to say as a private lender, we contributed to that!

Let’s get down to the nitty-gritty though, shall we? The average flipper made a $60,000 profit per house flipped. Additionally, they saw a 38.7% return on investment. However, the average flip took 180 days. Still, that’s not a bad yearly income especially given the median household income in the US is $52, 145.

In previous blogs we talk a lot about investment strategies and with that is how to move from wholesaling, to flipping, then on to building an entire portfolio. This means multiple projects at once and the potential for big income. Last, you should know that some markets are more lucrative than others. This is where it can pay to be well versed in what’s happening in other areas of the country as well as licensed in multiple states!

Brows our website or chat with Michael for more information on how to build a lifetime of wealth in this fast-paced and exciting industry!

*Attom Data Solutions


Why Choose Hard Money

Traditional Vs. Private Lending

Traditional lending is based on your ability to repay loan.  Banks will look at your credit score or debt-to-income ratio.  If your scores are too low, you have debt that’s beyond your income, or below the financial institutions’ safety level of debt-to-income ratio, then you may not qualify to repay the loan.

Hard money lending considers different factors, which is why it can be a great solution. In addition, hard money allows you to continue your projects and focus on growing your empire all while remaining protected.

One of the most attractive features of hard money and reasons people turn to it is because it allows them to close quickly, close with sub-par credit and even close with a reported income that won’t qualify.  How is this possible?

Hard money lenders based their underwriting on the value of the hard asset.  This means that if you get into a situation where you are unable to repay the loan, the lender can take the asset and get their money back, regardless of your income or credit.  Also, in terms of time, they can move exponentially faster because they don’t have the regulations of conventional lenders.

Many hard lenders will still ask you to provide your credit score, income statement and even complete a background check however, these don’t necessarily play a large factor into getting the loan or even the loan terms. In fact, the terms are usually given most favor by experience as a real estate investor.

The more experience the borrower has, the more easily the lender can structure a loan using a higher LTV, in addition to lowering closing costs.”  Many of the conventional financing options available don’t take these strengths of the borrower into account. Meanwhile, hard money lenders like has limitless capital to get the deal closed and for those with experience

For more information about how we can assist and protect your investments, contact Michael Barker:

Progressive Investing

Moving from Wholesaling, to Flipping and then to Building Your Portfolio

There are various styles of investing based on the individual investor’s goals, risk tolerance, timing, liquidity and more factors based on the investment vessel they use. This holds true when investing in real estate as well. Here’s an example of two different strategies. An investor who wants to build capital fast will often choose to flip a property; meanwhile, an investor looking for long term income will typically hold property for monthly income from rent.

As we’ve previously mentioned wholesaling is a great strategy to start with. It has a reduced amount of risk involved. In addition to spending less time, (wholesaling a home, typically only takes 15 to 45 days) you’re putting up funds only for the deposit which is paid back when the buyer you assign the contract to, closes on the home.  So essentially, that deposit money is the only risk in wholesaling.

During the wholesaling phase the investor should be focused on building capital, and educating themselves about each style of investing. One way to seek education during this phase in your career is with a mentor. We partner with Joe Barletta, a real estate investment coach who highlights the following process: the benefits of wholesaling first, then progressing into flipping homes and lastly, growing a real estate portfolio. Joe’s strategy allows novice investors to hone in on the skills all real estate investors need to fine tune. He teaches beginners how to start investing with low amounts of capital and he continues to mentor the investor as he or she progresses into the other styles of investing.

Using Joe’s strategy, the natural progression from wholesaling would be to flipping a home.  This allows an investor to make more money on a single deal. However, it may also take longer. By this we mean, days, months even up to a full year. Another risk factor is the investor is now actually owning the home on paper as well. (The investor/flipper takes the title.)  The risk is higher because a flipper is responsible for more cash into the deal. For example, they are responsible for the down payment at purchase, monthly payments, insurance, and title costs.  As a result, the best way to start flipping is to start small.  Look for properties in your price range and ones which require minimal renovations.  When possible, purchase with cash, because cash buyers can get out of the flip faster.  As the investor grows their circle of contractors, appraisers, financing, and knowledge of the market they can start tackle bigger jobs and qualify for better terms in financing.

The end goal is to create a passive income so that we can retire, hopefully sooner, rather than later.  Growing a rental portfolio can be a great way to do this. However, the investor should know the risks involved and how to manage them.

If the investor seeks financing to own the home, it’s a good idea to keep flipping while building his or her portfolio so that they can keep their debt down.  In situations where the renter stops paying rent, an eviction process can be lengthy and the owner can still be responsible for the mortgage.  If a flipping projects can pay off a mortgage, then the investor is only responsible for insurance, taxes, and maintenance.  One way to avoid the eviction scenario is with a preferred tenant who does pay rent on time. This also results in higher profits for the investor from that one property.

When investors fail to continue the job of flipping, they often find themselves owning multiple properties, all with debt and only getting the monthly income that an investor with one rental and no debt receives.  To continue wholesaling and flipping while building a portfolio will allow an investor to quit their job, create a passive income, manage risk, and have control over growing their income.

Be sure to check out how you can benefit from Joe Barletta’s coaching services here.

Creating a Flipping Business Plan

Creating a Flipping Business Plan

If you’re just getting started in real estate creating a business plan can be helpful. Even if you’ve been flipping houses and investing in real estate for a long time, going back and creating a business plan or revamping your original plan could prove wise. In the very least, the plan helps outline your business, provides direction and can even help clarify and put meaning to why you’re in business. When you get stuck or lost, the plan can be a great tool to revisit. We’ve put together a brief outline of items you might want to include in your home flipping business plan.

  1. A Mission Statement. On a deeper level this may touch on your purpose or what they now call in business your, “why.”
  2. Summary of Objectives. This might include what it is you aim to do, or problem you aim to solve and/or what your goals are for your business.
  3. Leads and Sales. This section might include a brainstorm of ideas for how you plan to generate and follow up with leads as well as manage leads through the sales pipeline. This includes leads for both the properties themselves as the buyers once you’re ready to sell the properties.
  4. Timelines. You might consider thinking about how much time you’ll spend or already do spend buying, fixing and selling the property. Once mapped out you may see room for improvement!
  5. Budget. This is a no brainer. However, sometimes business owners forget to include things like marketing and advertising budgets. Remember to consider these areas as well as the cost of property and renovation costs.
  6. Funding. List out any and all funding resources.
  7. Exit Strategy. This one is huge because investors will want to see it. Your exit strategy outlines how you plan to get out of the property. (Usually selling.)

Carve out time to complete your business plan so it’s ready to go when an investor requests it. This will save you time and money! For additional information on real estate investing and private lending please contact our loan specialists, Michael Barker. or reach out via our website chat feature!