How To Turn Debt Into Equity In Today’s Real Estate Market

It’s always best to keep your money working for you right? If you just completed a flip you are now looking at big profit along with big income tax issues. Why not keep your flip and make some monthly cash flow and a much bigger profit on the back end in 1-3 years. Let this flip help fund another down the road. Most flippers utilize hard money loans to finance their deals, which is a great method to take down a deal. They also need to get out of the deal quickly and get the house completed because of the finance charges associated with hard money. In this article we will break down how to deal with this in todays tight and very competitive housing market and learn about a strategy that will keep money flowing for years to come.

How To Turn Debt Into Equity

The Flippers Dilemma

Most flippers cannot hold onto a property despite really wanting to keep it. There simply is not enough cash flow to pay the hard money and all the other expenses just to sit on the property and be a landlord, it’s a vicious cycle that never ends. What if you had other options?

At Flip Sharkz our partners can help you cash out re-finance your hard money lender, with a conventional or commercial loan and lower your monthly expenses. You can now sit on that house and cash flow significantly. But wait.. you don’t think you want to be a landlord? That’s great too, because we have a program just for you. It’s called the Slow Flip.

What is a Slow Flip?

We bring to the table a qualified buyer ready to BUY your rehabbed property. The buyer comes in with a healthy down payment, they get credited towards the purchase price of the house. We finance the newly rehabbed property to the new owners. No more toilets, trash and tenants of the old way.

Who Wants Cash Flow?

We make sure and structure the monthly cash flow you need in the beginning along with a great ROI in the back end. Who can say no to $300-$500 month positive cash flow? The typical returns from our investors are 12-20% cash on cash and ROI’s overall of 20-80%. I bet you are not getting that return from a conventional rental property in Eugene or anywhere else right? (Maybe if you purchased it in 2008). We have a real Estate Agent and Loan Officer team already in place to help take care of the whole process.

Tax Advantages

Best part of this besides the monthly income and a higher sales price than you’d get listing now, is simply the huge tax advantages associated with a investment property. We all know the IRS is pretty liberal with real estate investors. They have to be. We provide housing and the tax benefits with rentals is what helps keeps the housing machine going.

Value Add

As investors, we love the term “Value Add”, we specifically seek properties with that in mind, its a crucial part of our strategy. So why not take advantage of the value add you already have? If you sell today at retail, you just gave away your value add to your retail buyer, so lets tap into it and leverage it the best you can. Lets face it, the market is tightening and with competition from all the iBuyer programs out there, leverage should be a key focus point.

Collaboration

Like I said before, the real estate market is tightening, it’s also shifting as well. Competition is strong, iBuyers (Zillow, Faira, OpenDoor, OfferPad) are paring down the thick margins we once had. The business model of previous years is changing. Previously, investors and agents were in seperate corners working independently. Today is different. We find ourselves working alongside agents every day. We are collaborating on different deals. We are also teaming up with other investors in an effort to enhance their gains and work our way through the new age of real estate investing.

 

Here’s how our partners program can help:

  • NO INCOMENO ASSET NO TAX VERIFICATION TO THE BORROWER
  • Closing in your name is also available
  • Purchase, Rate & Term, Cash Out,
  • No Seasoning of Funds
  • Cash out refinance

We already know our Slow Flip strategy would fit into your investment portfolio today, can you adapt and roll with the shifting market? Everyone in real estate knows the market is changing, consider keeping the best tangible asset you have already.

At Flip Sharkz, we are in the creative financing real estate business. We differentiate ourselves from every other investor out there by providing solutions that keep you making money while minimizing risk and focusing on untapped sectors of real estate that other investors overlook. Give us a call and let’s discuss how we can help you. We’d love to sit down and figure out how we can get you more equity from your investment property or add more to your portfolio. Call to day and ask to speak to Ed 541-780-2424

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