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.
Understanding
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?