Chasing Financial Freedom

Falling in love with a deal that does not work is the most expensive mistake in real estate.

If you cannot trim the renovation budget or the purchase price the deal is telling you something. And a 15 to 20% fudge factor built into every rehab budget is not optional. It is the difference between a profitable exit and a costly lesson.

Have you ever blown your rehab budget because you did not build in a buffer?

Drop your number below.

More tools and straight talk at trutalk.co

If the fees on your loan estimate look too good to be true, they are.
Light fees mean undisclosed costs waiting for you at the closing table. Box D adds up everything. And what is missing from A, B, and C shows up as a surprise right before you close.
Have you ever opened a closing disclosure and felt your stomach drop because the numbers changed? Drop your story below.
More tools and straight talk at trutalk.co

Rehab went perfect. Exit strategy did not.

This is what happens when you max out your hard money loan at 75% LTV and never stress test your exit before you sign. One deal. One mistake. Zero options left.

Have you ever been stuck in a deal with no clean way out? Drop your story in the comments.

More tools and straight talk at trutalk.co

You are about to sign a deal that will cost you money every single month. And you are calling it an investment.
If your DSCR ratio is sitting at 1.05, 1.09, or 1.02 you are not in a deal. You are in a problem.
Here is the math nobody wants to run before they close.
Your property manager takes 7% off the top. You started at 1.09. Now you have 2% left for every hailstorm, every repair, every bad tenant, and every reserve requirement your lender is going to ask for.
And neither of us is God. We cannot predict what actually happens after closing.
Guys, you are not in this business to lose money. You are in this business to make money. A 1.25 DSCR ratio or higher is the minimum you need to be in before you ever touch a hard money loan. That is not a suggestion. That is the stress test that protects everything you worked for.
Did you box these numbers before you went to your hard money lender? If you are not sure, that is the problem.
Reach out to me before you close your next deal. Let's stress test it together before it costs you.