As someone with 7 years of experience in the real estate industry as a private money broker, consultant, adviser and now developer of the REINDEER platform and organization I feel people need to have a better baseline understanding of how capital works. How does OPM work? The cost of capital for real estate investors using OPM (Other People's Money) varies based on several factors, including the type of property, the purpose (flipping or holding for rental), and the sources of financing. Here's a summary: 1. Flipping Properties Hard Money Loans: Interest Rates: Typically between 10% to 15%. Loan Points: Usually 2% to 4% of the loan amount. Term: Short-term, usually 6 to 12 months. Pros: Quick approval, less stringent credit requirements. Cons: High cost, quick... Read more
Tag: resources & learning
The Concepts of Advanced Underwriting: The Time and Value of Money: IRR: Internal Rate of Return
We are getting ready to launch our Learning Modules and will be offering some advanced programming for real estate investors who want to be light years ahead of their competition. With these limited sessions that will not be recorded you will earn the respect of sellers, underwriters and lenders alike. The concept of the Time and Value of Money (TVM) is fundamental to underwriting real estate acquisitions. It is based on the principle that a dollar today is worth more than a dollar in the future due to its potential earning capacity. This core idea impacts various aspects of real estate investment and underwriting processes. Here’s a summary of how TVM applies to underwriting real estate acquisitions: These are important topics that will give the... Read more
Unlocking the Power of Private Money: Your Key to Real Estate Success
"Unlocking the Power of Private Money: Your Key to Real Estate Success" Are you a real estate investor looking to supercharge your investment strategy and achieve your financial goals faster than ever? If so, you're in the right place. In the dynamic world of real estate, opportunities often present themselves when you least expect them. To seize these opportunities and thrive in the competitive market, savvy investors have turned to a powerful resource that can be a game-changer: private money. In this article, we'll delve into the world of private money for real estate investors, uncovering the hidden potential and undeniable advantages it offers. Whether you're a seasoned investor or just starting out, understanding the ins and outs of private money can open doors to... Read more
Looking for Sites like Active Rain? Give AgentsGather.com a Try
If you’re a real estate professional who has been searching for a platform similar to Active Rain, look no further. AgentsGather.com is a cutting-edge online hub designed to bring together real estate agents, affiliates, appraisers, lenders, buyers, and sellers. With a focus on community engagement, collaboration, and advanced technology, AgentsGather.com is revolutionizing the way real estate professionals interact and do business.