Real estate investing is a dynamic and rewarding endeavor, but securing the right financing is critical to success. Understanding the types of lenders available and knowing when to use each can help investors maximize their returns and streamline their projects. Let’s explore the key players in the lending space—traditional mortgage lenders, hard money lenders, and commercial bankers—and discuss how they can complement one another to support your investment goals.

Traditional Mortgage Lenders

Who They Are:
Traditional mortgage lenders are banks or financial institutions that provide long-term financing for residential properties. Their loans typically come with lower interest rates and longer repayment terms, making them ideal for buy-and-hold investors.

When to Use Them:

• Rental Properties: If you’re planning to hold onto a property and generate rental income, a traditional mortgage offers stability and predictable payments.
• Primary Residences with Investment Potential: When purchasing a home you plan to live in while renovating or renting out part of it, traditional lenders are often the go-to choice.

What to Keep in Mind:
Traditional mortgages usually require good credit, a down payment, and detailed income verification. Their application process can be time-intensive, making them less suitable for quick acquisitions.

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Hard Money Lenders

Who They Are:
Hard money lenders, like Low Tide Private Lending, specialize in short-term financing solutions. These lenders focus on the value of the property rather than the borrower’s credit profile, allowing for faster approvals and funding.

When to Use Them:

• Fix and Flips: Hard money loans are perfect for acquiring and renovating properties you plan to sell quickly.
• Time-Sensitive Deals: When opportunities arise that require quick action, hard money lenders can often close within days.

What to Keep in Mind:
While hard money loans offer speed and flexibility, they usually come with higher interest rates and shorter terms. These are trade-offs for the convenience and accessibility they provide.

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Commercial Bankers

Who They Are:
Commercial banks cater to larger-scale investments, such as multi-unit residential properties, mixed-use developments, and commercial spaces. Their loans are often tailored to the specific needs of business entities rather than individuals.

When to Use Them:

• Large-Scale Investments: If you’re buying an apartment complex or office building, a commercial bank can provide the capital you need.
• Refinancing: Commercial loans are an excellent option for restructuring debt on larger properties to secure better terms.

What to Keep in Mind:
These loans typically require a strong financial profile, a proven track record, and a thorough business plan. Like traditional lenders, the process can be more rigorous and time-consuming.

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How They Can Work Together

Strategic investors often leverage multiple types of lenders throughout their investment journey:

• Start with a hard money loan for a quick purchase and renovation.
• Transition to a traditional mortgage or commercial loan to refinance at a lower rate and longer term once the property is stabilized or producing income.

This combination allows you to act quickly on opportunities while securing cost-effective long-term financing later.

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How Low Tide Private Lending Can Help

At Low Tide Private Lending, we bring extensive experience in the traditional banking space. Whether you’re looking for a quick hard money solution or need a referral to a trusted mortgage or commercial banker, we can guide you to the right resources. Over the years, we’ve built strong relationships with top-tier lenders who understand the needs of real estate investors, and we’re happy to connect you with them to support your investment strategy.

With the right team of lenders, your real estate goals are within reach. Let us help you navigate your options and build a tailored financing plan that works for you!

When you’re getting into real estate investing, one of the biggest decisions you’ll face is how to fund your project. Do you use your own cash, or is it better to leverage other forms of financing, like hard money? While it can seem simpler and less costly to just use personal funds, there are many advantages to choosing hard money instead. Here’s why savvy investors often lean toward hard money loans over using their own cash.

1. Preserve Your Cash Flow for Flexibility

Real estate projects can require significant capital, and it can be tempting to use your own money upfront. However, using personal funds can deplete your cash reserves, limiting your flexibility if other opportunities or unforeseen expenses arise. Hard money lending allows you to keep your cash liquid, so you can respond quickly to new investment deals, address emergencies, or reinvest in your business.

When cash flow is preserved, you have the ability to juggle multiple investments at once, maximizing your reach and growth potential as an investor.

2. Boost Your Return on Investment (ROI) with Leverage

Using other people’s money to fund your deals can enhance your return on investment. With hard money, you can spread your available capital across several projects rather than committing all your cash to a single property. Leveraging financing this way can lead to higher overall returns, as you’re able to diversify your investments and potentially scale faster than you could with personal funds alone.

In real estate, leveraging capital to acquire multiple properties means that each project has the potential to increase your returns, making your money work harder and expanding your investment portfolio more quickly.

3. Reduce Financial Risk by Sharing Responsibility

Every real estate project has risks, from construction overruns to market fluctuations. By using hard money instead of personal funds, you’re sharing the financial risk. If a project experiences delays or other unforeseen issues, you’re not entirely on the hook, and you’ll still have cash on hand to cover yourself or invest elsewhere.

When you’re working with hard money, it can also be easier to budget and plan effectively, as lenders often provide insight into project costs and timelines. In the end, using hard money can be a way to minimize the exposure of your personal finances while still allowing you to take advantage of real estate investment opportunities.

4. Increase Speed and Efficiency with Hard Money

Hard money loans are typically faster and easier to secure than traditional loans, which often require extensive paperwork and take weeks to finalize. This speed can be a significant advantage in real estate investing, where competition is high and the best deals get snapped up quickly. The quick approval and funding process of hard money loans allows you to act fast, securing the property and getting started on renovations without delay.

By using hard money, you can gain an edge in competitive markets and focus on completing projects efficiently, improving your project timeline and helping you realize profits sooner.

When to Use Hard Money for Your Real Estate Projects

While hard money is a fantastic tool, it’s especially beneficial for short-term projects like fix-and-flips or quick renovations. The fast approval process, coupled with the flexibility to keep personal cash on hand, makes hard money an ideal option for investors looking to grow their portfolios quickly.

As with any investment decision, it’s essential to do the math and ensure that your expected returns justify the cost of borrowing. A hard money loan is an investment in itself, and if it’s used strategically, it can enhance your ability to build wealth without tying up personal resources.

In Summary

Choosing hard money over personal funds can be a game-changer for real estate investors. It allows you to preserve cash flow, boost your ROI, reduce personal risk, and speed up the investment process. By leveraging hard money wisely, you can expand your portfolio and increase profits without overextending yourself financially. So, before you commit to using your own funds, consider whether a hard money loan might be the smarter move for your next project.

Election Day reminds us all of the power of our choices. Just as we weigh our options before casting a ballot, smart real estate investors weigh critical factors before diving into a property investment. Making a well-informed decision is key to a successful flip, so why not take a page from the Election Day playbook?

Here’s a look at three essential questions to consider when choosing your next investment property—and how each choice can lead you closer to your real estate goals.

1. Location, Location, Location: “Voting” for the Right Neighborhood

When it comes to real estate investing, the neighborhood you select can make all the difference. A property in an up-and-coming area may yield higher returns, while a home in a declining area could bring unexpected challenges. Here are a few questions to ask:

• Is the neighborhood growing? Look for signs like new construction, businesses moving in, or infrastructure projects.
• What’s the crime rate like? Lower crime rates can attract more buyers or renters.
• What’s the proximity to amenities? Homes near schools, parks, and shopping centers often have greater appeal and a higher resale value.

Investing in the right location can be like casting a vote for a successful outcome in your investment. Choose wisely!

2. Evaluate Condition: The “Ballot” on Repairs and Renovations

Once you’ve narrowed down the location, it’s time to assess the property’s condition. Here, your decision can impact both the timeline and costs involved. Key considerations include:

• Scope of repairs: Will this be a quick cosmetic flip, or does it need major structural work?
• Repair vs. Return: Consider the ARV (after-repair value) to determine if the investment in repairs will be worth the anticipated return.
• Your Expertise and Resources: Do you have experience with renovations, or will you need a contractor? Understanding your capabilities will help you budget accurately.

Just like a well-informed voter, a real estate investor needs to understand the potential challenges. A strategic plan for the renovations will help maximize the return on your “vote” for the property.

3. Look at Market Trends: “Polling” for the Right Timing

Timing is essential in real estate investing, so it’s critical to assess market trends before buying. Similar to how polling can give insight into a candidate’s likelihood of winning, studying market trends helps you predict the best timing for your investment. Ask yourself:

• Are homes selling quickly? A “hot” market means demand is high, which is ideal for a quick flip.
• Is the area attracting new jobs? Job growth can drive demand, as people move to the area.
• What are comparable homes selling for? Keep an eye on recent sales to gauge a realistic selling price.

Understanding local market trends helps you anticipate potential risks and returns, so you can make an informed “vote” for or against a property.

Final Thought: Making Choices That Set You Up for Success

Like casting a ballot, every choice you make as an investor is a step toward your desired outcome. Being strategic with location, condition, and market trends means that you’re not just investing in real estate—you’re investing in your future.

So, on this Election Day, remember the power of an informed decision. By applying these principles, you can build your path to success in real estate investing—one wise choice at a time.

Halloween is just around the corner, but no property needs to look haunted to match the season! Overgrown shrubs, tangled vines, and scattered leaves can make even the best investment look neglected and even a little spooky. For real estate investors, creating a clean, welcoming exterior isn’t just about curb appeal—it’s about making a great first impression on buyers and even neighbors.

Here are some easy tips to keep your property’s exterior looking sharp and to make your investment feel less “haunted” and more inviting:

1. Tame the Overgrowth

Overgrown shrubs and grass can quickly make a yard feel abandoned. Take some time to trim back bushes, remove any dead plants, and edge the lawn for a neat, finished look. Even simple trimming around pathways and driveways can do wonders to make a property feel well-kept and inviting. Plus, a tidy yard shows buyers that you’re taking great care of every detail!

2. Rake Up Those Fallen Leaves

Autumn brings beautiful color, but it also brings endless piles of leaves. While a few leaves add charm, too many can make a yard look cluttered. Keep the lawn clean by raking regularly, especially around high-traffic areas like the front walk and entrance. Not only does this make the yard look fresh, but it also prevents leaves from building up in drains and gutters—saving you from potential water issues later.

3. Add Some Mulch

Fall is the perfect time to refresh garden beds with a new layer of mulch. It’s an easy, cost-effective way to create a clean, cohesive look that complements seasonal décor. Choose mulch that’s a rich, natural color to contrast with any greenery or autumnal plants you may add. Mulch doesn’t just look good; it also helps control weeds and keeps moisture in the soil—a win-win for curb appeal and plant health.

4. Clear Walkways and Driveways

A cluttered pathway can create an unwelcoming feel. Sweep or power wash any paths, driveways, and the entryway to remove dirt, leaves, and any stray branches. Not only does this help boost the look of the exterior, but it also creates a safer space for visitors and potential buyers—no one wants to trip on stray branches or hidden steps!

5. Finish with Seasonal Touches

Once the yard is tidy and pathways are clear, add a few tasteful seasonal touches to bring your property to life. Consider a fall wreath, some potted mums, or even a few pumpkins to give the property a welcoming touch without going overboard. Choose decorations that align with your property’s style, making sure they don’t distract from the home’s best features.

Curb Appeal Made Easy

Taking the time to clean up your property’s exterior is a simple step that makes a big difference in how potential buyers perceive your flip. By taming the overgrowth, raking up leaves, refreshing garden beds, and keeping pathways clear, you can transform a spooky exterior into an inviting space that feels like home.

So, this Halloween season, let’s leave the haunted houses to the ghosts—and make your investment stand out with some serious curb appeal!

When it comes to real estate investing, especially fix-and-flip projects, having a solid relationship with your contractors can make or break your timeline and bottom line. Contractors are the backbone of any renovation, so creating a partnership based on trust and communication is crucial for getting the job done right—and on time.

In this post, we’ll explore three essential tips to help you build and maintain strong relationships with your contractors.

1. Communicate Clearly and Early

Clear communication is the foundation of any good relationship, and working with contractors is no different. From the very beginning of your project, make sure you’re on the same page about all the important details. This includes:

• Timeline: Agree on a realistic schedule for the work, keeping in mind potential delays that could arise.
• Scope of work: Make sure the contractor knows exactly what needs to be done, and provide detailed instructions if necessary.
• Budget: Have a clear understanding of the costs involved and how you plan to pay for the work.

By being upfront and transparent, you can avoid many of the misunderstandings that often lead to delays or disputes. Regular check-ins throughout the project will also help keep things on track.

2. Pay on Time

Money can often be a point of contention, but it doesn’t have to be. Paying your contractors on time shows them that you value their work and respect their business. A contractor who knows they’ll be paid promptly is more likely to prioritize your project, which can lead to faster completion times and a better working relationship overall.

You can also consider setting up payment milestones at different stages of the project to keep both sides accountable. For example, you could release a portion of the payment after the demo is completed, another after inspections, and the final payment once everything is finished and inspected. This keeps the contractor motivated to stay on schedule and ensures the work meets your expectations.

3. Build Long-Term Partnerships

Flipping houses isn’t just a one-time gig—it’s a business. By fostering long-term relationships with your contractors, you can set yourself up for success on future projects. Contractors who feel appreciated and respected are more likely to go the extra mile, take pride in their work, and even give you priority on their schedules.

Simple gestures like expressing appreciation, offering referrals, or even bringing coffee to the job site can go a long way in strengthening these relationships. Building trust will create a win-win situation, where both you and your contractor can rely on each other for consistent, quality work.

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In Conclusion

Real estate investing is about more than just numbers and properties—it’s about people. Treating your contractors as partners, rather than just hired help, will lead to smoother projects, better outcomes, and long-lasting success in the world of house flipping. Follow these tips to establish strong relationships with your contractors and watch your business grow.

Are you ready to take your fix-and-flip business to the next level? At Low Tide Private Lending, we offer the financial support you need to close quickly and focus on what matters most—turning those properties into profits.

Contact us today to learn more about how we can help you grow your real estate portfolio!

Flipping houses can be a lucrative venture, but as any experienced investor knows, it’s all about making the right moves to boost your profits. Whether you’re a seasoned pro or just starting out, understanding how to maximize your return on investment (ROI) is key to ensuring your success.

Here are three essential strategies that can help you get the most out of your next fix-and-flip project:

1. Buy Below Market Value

One of the most effective ways to maximize profit on a fix-and-flip is to purchase properties below market value. This gives you instant equity and builds in a safety net in case of unexpected costs during renovation. To find deals, look for distressed properties, foreclosures, or homes that have been on the market for an extended period.

Remember, the less you pay upfront, the more room you have for improvements—and ultimately, profit.

Pro Tip: Build strong relationships with real estate agents and wholesalers to get first dibs on off-market deals or pocket listings. You can also attend auctions or keep an eye on foreclosure sales for more opportunities to snag a deal.

2. Prioritize High-ROI Renovations

Not all renovations are created equal when it comes to adding value to a property. To maximize your return, focus on the areas that matter most to buyers. The kitchen, bathrooms, and exterior curb appeal are the big three when it comes to high-ROI upgrades.

Simple upgrades like a fresh coat of paint, modern fixtures, and updated flooring can make a big impact without breaking the bank. Avoid over-improving the property for the neighborhood, as this can cut into your profits.

Pro Tip: Before starting the renovation, assess the “comps” (comparable sales) in the area. This will help you determine what buyers expect and what level of upgrades will help you stand out without overspending.

3. Manage Time Efficiently

Time is money, especially in the fix-and-flip world. The longer your project takes, the more you’ll pay in holding costs such as loan interest, insurance, utilities, and property taxes. A well-planned, fast-moving renovation can make a huge difference to your bottom line.

Make sure to create a realistic project timeline and work with contractors who are dependable and efficient. One of the best ways to save time is to have financing in place quickly, so you can close the deal and start renovations right away.

Pro Tip: Low Tide Private Lending offers fast, flexible financing, often closing in 10 business days or less. The quicker you get the property in your name, the sooner you can get to work on those high-ROI upgrades.

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The Bottom Line

Maximizing your profit on a fix-and-flip requires a strategic approach to purchasing, renovating, and managing your time. By following these tips, you’ll be well on your way to flipping success. And remember, Low Tide Private Lending is here to help streamline the financing process, so you can focus on what you do best—transforming properties and boosting your profits.

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Ready to start your next project?
Contact Low Tide Private Lending today to learn how we can help with fast closings and flexible financing!

At Low Tide Private Lending, we love celebrating our borrowers’ successes, and this Beaufort, SC flip is a great example of the value of smart investing and leveraging market opportunities.

The Numbers

• Purchase Price: $185,000
• Appraised ARV (After Repair Value): $290,000
• Listed Price: $319,000 (July 2023)
• Final Sale Price: $335,001

This property was purchased for $185,000 in the growing Beaufort market, with an appraiser valuing the property at $290,000 post-rehab. The investor, confident in the home’s potential, completed the necessary renovations and listed the property for $319,000. The market demand in Beaufort was strong, and within just two weeks, the property sold for $335,001—far exceeding the original ARV.

The Key to Success
Several factors contributed to this profitable sale. First, Beaufort is a sought-after area known for its charm and coastal living. The investor made strategic upgrades to align with market demand, adding modern touches that appealed to buyers looking for move-in-ready homes. Additionally, pricing the home just below its market potential helped create interest and led to competitive offers, ultimately driving the sale price up.

This flip is a great reminder of how well-planned renovations, smart pricing, and market timing can maximize returns. If you’re interested in similar opportunities or need fast funding to jump on your next investment, Low Tide Private Lending is here to help.

If you’re a real estate investor looking to boost your rental property’s profitability, there are a few key strategies that can help you increase rental income without significant renovations or large expenditures. From upgrading amenities to refining your marketing approach, these tactics can help you stand out in the competitive rental market. Here are three effective ways to maximize your rental income.

1. Upgrade Amenities to Justify Higher Rent
Adding modern or high-demand features to your rental property can significantly increase its appeal, allowing you to charge higher rent. Small, cost-effective upgrades, such as installing a smart thermostat, adding energy-efficient appliances, or freshening up the landscaping, can make your property more attractive to potential tenants.
In today’s tech-savvy world, tenants often expect smart home features like programmable thermostats or keyless entry. These conveniences not only add value to your property but can also lead to savings on utilities—something many tenants are willing to pay a little extra for. A minimal investment in upgrading your amenities could result in a higher monthly rent and faster tenant turnover.

2. Offer Flexible Lease Terms
One way to stand out in a competitive rental market is by offering flexible lease terms. While long-term leases (typically 12 months) provide stability, offering options like month-to-month or shorter leases can appeal to a wider range of renters, including those in transitional periods or seeking temporary housing.
This flexibility allows you to potentially charge a premium for shorter-term rentals, as tenants in need of more immediate or flexible housing solutions are often willing to pay higher rates for the convenience. Additionally, shorter leases can give you the opportunity to adjust rent more frequently, keeping up with market trends.

3. Market Effectively to Attract More Tenants
First impressions are everything when it comes to attracting tenants, and your property listing plays a big role. Invest in professional photography to highlight your property’s best features, and write detailed descriptions that showcase both the property’s amenities and the local area. A well-marketed property has a better chance of standing out, attracting more qualified tenants, and reducing vacancy periods.
Don’t just list your property on one or two platforms—expand your reach by using popular rental listing websites, social media, and even community boards to ensure your property gets maximum exposure. The more eyes on your listing, the better your chances of finding the right tenant quickly.

Maximizing rental income is about being strategic with small but impactful improvements. By upgrading your amenities, offering flexible lease options, and refining your marketing, you can increase your property’s profitability and maintain a steady stream of tenants.

Looking to invest in new rental properties or need funding for upgrades? Low Tide Private Lending offers fast, flexible financing solutions tailored to real estate investors. Get in touch today to see how we can help you grow your portfolio and increase your rental income.

When it comes to real estate investing, one of the most important decisions is how to finance your projects. You might be tempted to use your own cash to buy and renovate properties, but there are significant advantages to using hard money loans instead. Let’s explore why hard money financing can be a smarter choice for real estate investors.

1. Leverage Your Capital for More Investments

One of the biggest benefits of hard money loans is leverage. By borrowing against the property rather than using your own cash, you can keep your funds available for other opportunities. Real estate investors often have multiple projects going at once, and using hard money allows you to spread your resources across several investments. This helps you diversify your portfolio and potentially increase your overall returns.

Instead of pouring all your cash into a single property, leverage a hard money loan to finance the deal, and use your cash reserves for additional opportunities, unexpected expenses, or future investments.

2. Minimize Your Risk and Protect Your Liquidity

Keeping your cash tied up in one project limits your flexibility. What happens if another great deal comes along? Or what if unexpected expenses arise with the property you’re working on? By using a hard money loan, you maintain liquidity and are better positioned to respond to new opportunities or emergencies.

Real estate investing is all about managing risk, and hard money loans allow you to minimize that risk by reducing the amount of your own capital involved. This means less personal exposure if a project doesn’t go as planned.

3. Seize Opportunities Quickly

Speed is critical in real estate investing, especially in competitive markets. The best deals often come with tight deadlines, and waiting to free up your own cash can cause you to miss out on those opportunities. Hard money loans offer quick approval and funding, allowing you to move fast when you find a great property.

Traditional financing options can take weeks or even months, but hard money lenders like Low Tide Private Lending can close deals in as little as 10 business days. This quick turnaround time can make the difference between securing a great deal or losing out to another buyer.

4. Tailored for Fix-and-Flip Investors

Hard money loans are designed with real estate investors in mind, especially those focusing on fix-and-flip projects. The terms of the loan are based on the value of the property rather than your personal financial history, which is ideal if you’re purchasing a property that needs significant renovations.

Additionally, hard money loans are typically short-term, often lasting 6-12 months, which aligns perfectly with the timeframe of most fix-and-flip projects. The flexibility and speed of hard money make it a powerful tool for investors looking to quickly renovate and sell properties for a profit.

While it may seem easier to use your own cash for real estate deals, leveraging hard money loans can help you grow your investment portfolio, minimize risk, and give you the flexibility to act quickly when new opportunities arise. At Low Tide Private Lending, we specialize in helping real estate investors in NC, SC, and Savannah, GA, secure fast and flexible funding to make their projects a success.

Whether you’re just starting out or are a seasoned investor, hard money loans can be a valuable tool in your investment strategy.

As a real estate investor, one of your primary goals is to maximize your return on investment (ROI) with each property you buy. Whether you’re flipping a house or adding it to your rental portfolio, finding ways to enhance its value without overspending is key. One of the most effective methods? Increasing the square footage, particularly by adding bedrooms.

Why Adding Square Footage Pays Off

In most real estate markets, larger homes with more bedrooms generally command higher prices. Buyers and renters alike are willing to pay a premium for additional space, especially when it means having an extra bedroom to accommodate family members, guests, or even a home office.

For example, converting a 2 or 3-bedroom house into a 4-bedroom can significantly boost the property’s market value. Buyers often compare homes based on the number of bedrooms, and moving up to a 4-bedroom home opens your property to a broader range of potential buyers, especially families.

Cost-Effective Ways to Add Bedrooms

Adding square footage doesn’t always require an expensive extension to your property. Many times, investors can maximize existing space in cost-effective ways. Here are a few ideas:

• Convert an Office or Den: If your property already has a home office, den, or bonus room, converting it into a bedroom can be a simple, low-cost way to increase the room count without major structural changes.
• Finish a Basement or Attic: Basements and attics often have untapped potential. By finishing these areas, you can create additional living space that may serve as a bedroom or even a master suite, depending on the size and layout.
• Build a Small Addition: If your budget allows, adding a small room or extension can significantly raise your property’s value, especially in areas where square footage is at a premium. Be sure to get estimates and compare the cost of construction with the potential increase in property value to ensure the numbers make sense.

ROI Potential

The return on investment for adding square footage can vary depending on your market and how efficiently you manage the renovation costs. In high-demand markets, an additional bedroom can sometimes yield up to a 20% increase in home value, meaning it’s well worth considering in your investment strategy.

Financing Your Project

At Low Tide Private Lending, we understand that timing is critical for real estate investors. Whether you’re planning to finance a fix-and-flip or expand your rental portfolio, our boutique lending experience and fast closing times can help you seize opportunities quickly. With loans available for North Carolina, South Carolina, and the Savannah, GA area, we’re ready to help fund your next project.

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Adding square footage—especially through additional bedrooms—can be one of the smartest ways to boost your ROI in real estate investing. If you’re considering this strategy, let Low Tide Private Lending help you finance the project quickly and efficiently.

For more real estate investing tips, follow us on Instagram, or contact us today to see how we can help you grow your investment portfolio!