How to Flip a House

House flipping sounds like an easy and straightforward concept. But there is much more to finding a cheap house, purchasing it, and selling it for a profit. If it were that easy, the market would be over-saturated with house flipping real estate investors. A great deal of work goes into successfully flipping houses. Here are a few tips to consider before getting started.

Research Your Local Real Estate Market

Before purchasing a property to flip, it is important to know if your property is in an area where people want to live. Is it in an up-and-coming neighborhood? Is it in an area where people want to live? Thinking about these factors could determine your success or failure. No fix and flip investor wants the burden of a property that doesn’t sell. The objective is to flip quickly and understanding the market is an important factor in making sure that happens.

Examine Your Options for Financing

After researching the market and finding a property, now it is time to finance the deal. There are many ways to finance a real estate project. If an investor has enough cash on hand, they may fund the deal themselves. Leveraging may be an option for an investor that has equity in a property that they already own.  Additionally, a hard money loan can be a great option for someone who wishes to fix and flip a property.

Know the Cost

Depending on the property, the cost to repair a home for reselling can rise very quickly. One key factor to success can be knowing what repairs and improvements will add value to the property. Landscaping, upgrading appliances, and painting the exterior are just a few things to consider when preparing a fix and flip for reselling. Many real estate investors save money by making small repairs themselves while others prefer to hire contractors to do the work. Regardless of how the improvements are made, it is imperative that the work adds value.

Final Thoughts

Flipping houses does not come without risks. However, when informed decisions are made, the return on investment can be rewarding. Always perform due diligence and consult financial and legal professionals for sound advice.

The information provided is not investment, tax, financial or legal advice. Consult with a licensed professional. 


Investor Loan Source, a hard money lending company, provides high-quality investment property loans to private real estate investors at the lowest costs possible. Our process for providing real estate investors with private lending is unique. We place emphasis on the hard asset and value of the collateral (property) and less on the borrower. Our asset-based real estate investment loan model means we can provide more money lending to more investors than is available from standard bank loan models. At Investor Loan Source, providing real estate investors hard money loans is our business; it’s all we do. We offer several business real estate loans products designed to serve a variety of investors and property profiles, including hard money lending for properties to sell on owner finance. 

3 Tips for Real Estate Investors

Real estate investing is an exciting industry that could yield high returns for the savvy entrepreneur. While investing in real estate can be profitable, it is not for everyone. Real estate investing does come with some risks, and it takes a great deal of planning and research to be successful. If you are interested in venturing into the world of RE investing, we have three tips that may help you on your path to success.

1.Understand the Cost of Acquiring and Maintaining Property

Real estate investing can be costly. For example, a fix and flip property may require a loan for repairs and renovations. When investing in rental property it is important to consider additional costs like utilities, maintenance, and taxes

2.Examine the Location

The most important factor in the value of a property is its location. When deciding to purchase a property, consider the neighborhood and its proximity to attractions and amenities. Just because the price of a property is appealing does not mean it is a good purchase. Consider the long-term cost. Conduct research and ensure that your property is in a prime spot to increase the return on your investment. 

3.Build your Network

To be successful in the world of real estate investing, you must build solid relationships. It can be overwhelming to start in real estate investing. Having great connections can make your journey much smoother. Building solid relationships in the world of real estate investing is a key component of being successful. Additionally, attorneys, CPAs, lenders, inspectors, and contractors are people that will help grow a business. 

Closing Thoughts

Real estate investment can be an adventure. Be prepared for the ups and downs. When done properly, the smart investor can create great success. Surround yourself with insightful professionals that can take a real estate investor’s journey to the next level. 

The information provided is not investment, tax, financial or legal advice. Consult with a licensed professional. 


Investor Loan Source, a hard money lending company, provides high-quality investment property loans to private real estate investors at the lowest costs possible. Our process for providing real estate investors with private lending is unique. We place emphasis on the hard asset and value of the collateral (property) and less on the borrower. Our asset-based real estate investment loan model means we can provide more money lending to more investors than is available from standard bank loan models. At Investor Loan Source, providing real estate investors hard money loans is our business; it’s all we do. We offer several business real estate loans products designed to serve a variety of investors and property profiles, including hard money lending for properties to sell on owner finance. 

To learn more about Investor Loan Source, visit our website or follow us on LinkedInFacebook, and Twitter. To apply for a loan, click HERE.

Do you know the difference between a BPO, Appraisal, and Assessed Value?

Money and Home on Scale

Estimating the value of a property is an essential part of real estate investing. Depending on who you ask, why you ask, and for what purpose, you may get different answers. Whether your next purchase is for a fix-n-flip or a rental property, arm yourself with knowledge so you can be prepared to provide the valuation needed for your next deal!

Brokers Price Opinion (BPO) – Less expensive and comprehensive than an appraisal, and based primarily on predictive data. The BPO is a real estate broker or sale agent’s opinion of a property’s value and is often used to set the sale price of a property. It is rarely allowed as a substitute for an actual appraisal and can be thought of as more of a starting point.

Appraisals – An unbiased opinion of value given by a licensed or certified appraiser, and based on historical data. Mostly used to determine market value by verifying that an appropriate price is set given the condition, location, and features of a property. This is often required by the lender when a mortgage is involved to buy, sell, or refinance a property.

There are three basic approaches used in appraisals to determine a property’s value:

  1. Sales Comparison Approach: an estimate derived from similar properties, known as comparables or comps, that have been sold within the last year under typical market conditions and within a certain distance from the subject property. Typically, at least three or four examples must be used to give a good valuation.
  • Cost Approach: Based on an assumption that buyers will not pay more for a property than it will cost them to build a similar property from scratch. The property value is determined by:

Cost of Land + Cost of Construction – Depreciation

This is the most common valuation to determine the price for unique buildings such as churches and schools, and residential properties that do not generate income.

  • Income Capital Approach: Assigns a value based on the estimated returns of a property using the formula:

Market Value = Net Operating Income / Capitalization Rate

Assessed Value – The dollar value of a property, assigned by a municipal property assessor to determine property taxes.  Comparable home sales, location, square footage, quality, and market conditions, among many other factors, can heavily influence this determination. This assessment is usually calculated at a percentage of the Fair Market Value (FMV) which is updated periodically and may be disputed by the owner.

As you can see each valuation has its time and place. While the Brokers’ Price Opinion can be used to set the sale price on your home it should not be relied upon as a buyer of investment properties. Most lenders will require an appraisal to be done which is a much more in-depth estimate of value, while the assessed value should be considered when factoring your property taxes into the DSCR and cost analysis.

Finding a team of real estate professionals that you can lean on for guidance is essential to success starting with a lender you can trust. Discover the Investor Loan Source difference today!


Investor Loan Source, a hard money lending company, provides high-quality investment property loans to private real estate investors at the lowest costs possible. Our process for providing real estate investors with private lending is unique. We place emphasis on the hard asset and value of the collateral (property) and less on the borrower. Our asset-based real estate investment loan model means we can provide more money lending to more investors than is available from standard bank loan models. At Investor Loan Source, providing real estate investors hard money loans is our business; it’s all we do. We offer several business real estate loans products designed to serve a variety of investors and property profiles, including hard money lending for properties to sell on owner finance. 

To learn more about Investor Loan Source, visit our website or follow us on LinkedInFacebook, and Twitter. To apply for a loan, click HERE.

Common Myths Regarding Hard Money

There are many misconceptions regarding hard money lenders in the real estate industry today, and yet for those in the know, it continuously proves to be a real estate investor’s biggest asset. Do not be put off by the stigma surrounding the word “hard money” or by stories you’ve heard about a friend of a friend before learning more. Here are the top arguments I hear from naysayers on a continual basis and the reasons why they are simply not true!

Myth #1: Hard money is only for the desperate real estate investor.

This is the biggest myth of all. Many hard money lenders are privately funded, meaning they do not require bank financing to close a loan. Therefore, many hard money lenders can be more flexible than the bank when underwriting a loan if the deal makes sense. Hard money is great for those who are self-employed as they do not need to prove their income with a W-2, as well as immigrants, those with less than perfect credit scores, investors who work with properties that appear to be less than desirable, those investors who have reached their loan limit with their institution, and those investors who just need to close the deal fast. Hard money is for everyone!

Myth #2: Hard money loans are expensive.

While hard money loans tend to give most people “sticker shock” it is important to remember to look at the big picture. Most hard money lenders can lend a higher percentage of your project’s cost than some stringent traditional lenders, allowing you to bring less out of pocket funds to the closing table.

Hard money loans tend to have shorter repayment periods and prepayment penalty times. This means you can pay the loan off faster with less interest in total. Investor Loan Source, a national private lender, even has a one-time close feature allowing you to convert your short-term rehab project to a long-term rental without going back to the closing table. This allows you to avoid paying closing fees a second time.

In addition, because of the fast-closing times of most hard money lenders (who can often close within 10 business days or sooner) your potential for profit rises. After all – time is money. In an environment as hot as the current real estate market, the wait for a traditional bank loan can cost you opportunities.

When combining these perks your hard money loan tends to be a less expensive choice overall.

Myth #3: Hard money loans are risky.

This myth is almost laughable. Most of the time hard money lenders are lending out their own money and making a risky loan is not in anyone’s best interest. Hard money lenders often have a vast understanding of the real estate market and what is entailed for a project to be successful. It is not uncommon for lenders to be successful businesspeople who have the entrepreneurial spirit and a reputable background in real estate, investment banking, accounting, law, etc. If you choose an experienced hard money lender, this will ensure that proper due diligence and calculations are done to help determine whether an investment will be profitable for you, the borrower. They want you to be successful so that you will use them for your next real estate investment project.

Myth #4: Hard money lenders want to take your property.

Stop right there! Hard money lenders are in the lending business NOT the foreclosure business. They do not want to own your property. When a foreclosure is pursued, you can be sure it is because every other avenue was exhausted. Regardless of whether you go the traditional lending route or hard money, be sure that you understand your loan terms, have a solid exit plan in place and care apable of repaying your debt.

Truth: Hard money lenders are important resource.

Do not pass up the opportunity and benefits that come with taking out a hard money loan for your next real estate investment deal. It may make sense to use hard money based on your needs and the investment opportunity. Finding a lender you can trust is the single most important choice you can make. Looking for a hard money lender? Consider Investor Loan Source. Visit www.ils.cash to learn more.


Investor Loan Source, a hard money lending company, provides high-quality investment property loans to private real estate investors at the lowest costs possible. Our process for providing real estate investors with private lending is unique. We place emphasis on the hard asset and value of the collateral (property) and less on the borrower. Our asset-based real estate investment loan model means we can provide more money lending to more investors than is available from standard bank loan models. At Investor Loan Source, providing real estate investors hard money loans is our business; it’s all we do. We offer several business real estate loans products designed to serve a variety of investors and property profiles, including hard money lending for properties to sell on owner finance. 

To learn more about Investor Loan Source, visit our website or follow us on LinkedInFacebook, and Twitter. To apply for a loan, click HERE.

How To Start Investing in Real Estate

Thinking of investing in real estate, but not sure how to begin? First and foremost, know that you are not alone. Real estate investing is a great way to build your wealth, but when you have little to no experience it can seem a bit overwhelming.

Do Your Research.

We have all heard the old adage that knowledge is power, and it still holds true today. One of the best pieces of advice one can be given is to do their research. In this day and age, there is no excuse not to. So much information is available to us instantaneously. Begin by learning popular real estate terms. So often I get asked the definition for “ARV” and “deed of trust”. Arming yourself with the basic understanding of the lingo is imperative.

Time is of the essence, and most people feel they do not have enough of it. However, if you are serious about real estate investing you will find time. Listen to a podcast, eBook, or real estate talk radio while you are driving in the car, working out, or as you drift off to sleep. This is a great way to get your head in the game and learn while doing it.

Grow Your Network.

Your network equals your net worth! Surround yourself with like-minded people. There are so many avenues one can pursue with real estate investing, but one thing is certain, you will need trustworthy, competent people at your side. Do your research and build your network. Most large cities have Real Estate Investment Association groups (REIA’s) which are great places to learn the industry while making contacts. Many teach classes on real estate investing, tell both success and horror stories, and introduce you to reputable industry professionals and investments. Lenders, title companies, contractors, CPA’s, real estate attorneys and real estate agents are all worth getting to know. Leverage the experience and the field of expertise of those around you.  These people will help you grow your business/investments setting you up for success.

Find a Mentor.

An ideal mentor is an experience investor with time and knowledge to share. They can help you stay on track, keep focused, and guide you in the right direction. Be sure to ask lots of questions. Find out what your mentor did to become successful and mimic it.

Assess Yourself.

Next, you will need to do an honest assessment of yourself and your situation. You do not always need a lot of cash on hand or a perfect credit score to take advantage real estate investments. However, knowing your limitations will help set you up for success. 

Other questions you will need to ask yourself is how much time you have to dedicate to your real estate investments. If you have a full-time job, volunteer three times a week, and must keep your schedule as well as your kids, you might be better suited for a passive investment. One that does not take a lot of your time. Therefore, a fix and flip project may not be best suited to your situation. Semi-passive to passive options like real estate notes might work best for you.

Decide on the amount of risk you are willing to take. Do you have extensive knowledge in the industry and a pool of cash for investments that would allow you to go after those high-risk high-reward opportunities? If so, commercial deals might be your niche. Are you close to retirement and principal preservation is imperative, consider funds or REIT’s? Do you need passive monthly income? Consider a rental property. There are both aggressive and conservative options out there and knowing which category you are comfortable in will help guide you to the right investment.

Additional items to consider are the type of funds you are looking to invest; cash or structured funds (IRA’s, 401K, etc). If you, will you be investing as an entity or as an individual and what the taxing consequences might be in direct correlation to your situation (seek the advice of a CPA). Look at state laws and how they might affect your investment. These questions can be deciding factors.

Find a Trustworthy Lender.

Most new investors have limited cash resources. If that is your situation, consider finding a lender who can help you. There are private lenders, banks, hard money lenders and others out there who can help you get started. Even seasoned investors often use outside financial resources to help them grow their investment portfolio. Be sure to do your research and ensure your lender is trustworthy and deserves your business. Ask for referrals or ask your real estate networking group if you are having trouble finding good lenders.

Make Your Dream a Reality.

Once you have done these things go out and find your investment, do the leg work, and make your dream a reality. Remember to be realistic in your expectations and set goals. Do not overextend yourself either mentally or financially. Keep your mentor close, leverage the experience of industry professionals and never forget that your knowledge and network are the two most important things in your arsenal. This is how you will set yourself up for success.


Investor Loan Source, a hard money lending company, provides high-quality investment property loans to private real estate investors at the lowest costs possible. Our process for providing real estate investors with private lending is unique. We place emphasis on the hard asset and value of the collateral (property) and less on the borrower. Our asset-based real estate investment loan model means we can provide more money lending to more investors than is available from standard bank loan models. At Investor Loan Source, providing real estate investors hard money loans is our business; it’s all we do. We offer several business real estate loans products designed to serve a variety of investors and property profiles, including hard money lending for properties to sell on owner finance. 

To learn more about Investor Loan Source, visit our website or follow us on LinkedInFacebook, and Twitter. To apply for a loan, click HERE.

Hard Money Loans Made Easy

There are many financing options for real estate investors available today. One of the most popular options has become the hard money loan. A hard money loan is a loan collateralized by a hard asset (in most cases this would be real estate). One of the biggest differences between a hard money loan and a conventional loan is that hard money lenders use the value of the property versus the borrower’s creditworthiness to determine the loan.

Hard money loans tend to have terms of 12 months, but some can be extended to as long as two to five years. This works in favor of investors who plan to purchase a home in need of repairs, rehab it and sell it quickly for a profit

Advantages of Hard Money Loans

One of the biggest advantages is that there are less restrictions with hard money loans when comparing them to traditional loans. Lenders rely less on a borrower’s credit score and more on the value of the property itself. This allows borrowers with a less then perfect credit score to obtain a loan.

Another key benefit of hard money loans is that they can be acquired quickly. Loans from banks and traditional lenders often take up to 60 days to issue, while hard money loans can often fund in a week. This is especially important if investors hope to acquire properties with competing bids. Time is money in real estate and time is on your side with hard money.

Hard money loans also provide tremendous leverage for fix and flip and buy and hold investors. The investor can enter a project without putting their own money at risk and remaining liquidity. This is a huge reason real estate investors seek out hard money lenders in Florida.

An Easy Decision for Investors

Although many investors with imperfect credit scores find hard money loans easier to qualify for, because of the higher risk involved these loans often come with higher interest rates. Despite this, they are an integral part of the the real estate investing process and can be utilized when a traditional loan doesn’t make sense or is too difficult to get.

Hard money loans aren’t just for flippers. At Investor Loan Source, we offer loans for rental properties, as well as commercial investment projects. Be sure to ask one of our loan specialists about our exclusive wrapable loans, commercial and one-time close fix and rent options. We make hard money easy – the application process is fast and simple. Contact us at 833-457-2274, email us or apply online today.


Investor Loan Source, a hard money lending company, provides high-quality investment property loans to private real estate investors at the lowest costs possible. Our process for providing real estate investors with private lending is unique. We place emphasis on the hard asset and value of the collateral (property) and less on the borrower. Our asset-based real estate investment loan model means we can provide more money lending to more investors than is available from standard bank loan models. At Investor Loan Source, providing real estate investors hard money loans is our business; it’s all we do. We offer several business real estate loans products designed to serve a variety of investors and property profiles, including hard money lending for properties to sell on owner finance. 

To learn more about Investor Loan Source, visit our website or follow us on LinkedInFacebook, and Twitter. To apply for a loan, click HERE.