Then Increase Your Leverage

Leverage is how you use a loan to purchase a real estate asset. If you have 20% of the purchase and rehab cost then you can leverage those funds to purchase the entire property.

Improve Your Funding Capacity with Leverage

Funding a Flip – 80/20

Typically you will use Hard Money to acquire a property and rehab it. Your Funding Capacity will need to provide 20% of the the required funding in order to make a deal happen.

The Funding Calculation

Let’s use the Analysis Calculator to determine how much funding is needed.

Secure the 80% with Hard Money

Hard Money Lenders

Let’s take a look at LimaOne as an example!

Learn the Basics in 6 Steps

Now move forward with Step 4 – Finding Properties to Flip or Hold.

Your Baseline
Funding Capacity

Step 1 – Determine your Funding Capacity so that you can see the deals you can start with.

Improve Your
Funding Capacity

Step 2 – Look at ways to improve your funding capacity to that more deals are available to you.

Using Leverage to
Fund the Deal

Step 3 – Learn how to use the 80/20 Rule to purchase properties with a Hard Money Loan.

Finding Properties
to Buy

Step 4 – Find properties to flip or hold. Learn how to use PropStream to market.

The Rehab

Step 5 – Work with a Handyman to better understand rehabs, estimating, and costs.

Planning for Your
Property Exit

Step 6 – Buy with your exit in mind. Is the property a flip? Could it be a rental?

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