18 May 9 Ways to Save Money on Fix and Flip Repairs

The success of a fix and flip investment depends entirely on your ability to sell the rehabbed property at a price that not only recuperates your total investment but also leaves you with a profit. However, if you’re new to the real estate business, it’s all too easy to spend more than necessary on fix and flip repairs —and that can drastically reduce the amount of money you can make. Avoid that mistake by keeping the following eight tips in mind:

Fix and Flip

1. Stick to your budget

Assuming you used financing to purchase the property, you’ll have allocated a portion of the loan or secured additional funds to cover the costs of fix and flip repairs. That sum should be based on the pre-purchase home inspection, as well as a contractor’s assessment of the work that needs to be done and the costs of labor and materials involved. If you use this assessment as a benchmark for each part of the rehab project, you’ll avoid going over budget.

2.   Know what things should cost

You should have a general idea of the cost of plumbing, electrical, roofing, siding, painting and flooring projects BEFORE you get prices from contractors and BEFORE you submit an offer on a project.    If you want to know some tips, join us on June 13, 2019, for our Investor Meetup as we will be discussing how and where to price out renovation projects for your single and multi-family flips / holds.

3. Use subcontractors

Subcontractors’ rates can be as much as 10 percent lower than contractors’ rates. Make sure to hire subcontractors who are licensed, insured, and come well recommended. In addition, draw up an agreement in writing that clearly delineates each party’s rights and responsibilities.

4. Save on materials

Always handle the ordering, purchasing, and picking up of materials yourself. If you let your subcontractors do this, it can cost thousands in extra time, plus, they’re unlikely to do the footwork to keep costs as low as possible. Also utilize all delivery and pricing assistance that your vendors offer, both Home Depot and ABC Supply will be speaking on this at the meet up on 6/13.

5. Special Offers

Look for special offers, loyalty savings, and member or seasonal discounts at regular hardware stores. You can also get volume discounts if you buy at large scale suppliers. Again come to the meet up on 6/13 so Home Depot and ABC Supply can show what they have to offer!

6. Shop at Outlets

One way to pay much less for high-end materials is to shop at outlets for anything from paint to carpet to appliances. Since they mainly sell remnants, you can get significant discounts on anything from hardwood flooring to stainless steel appliances.

7. Salvage Yards

Finally, don’t forget to visit architectural salvage yards to find unique items that add a touch of character to a home, such as ornate fireplaces, stained glass windows, and antique doors.

8. Refurbish

Not everything that’s broken, scratched, or dated needs to be replaced. Refurbishing can be a cost-effective alternative with often surprisingly good results. Think of painting dated kitchen cabinets and replacing the handles; re-using wood from old doors for wide window seats or yard furniture; and having the enamel on sinks, toilets, bathtubs, and showers refinished.

9 Get hands-on

The costs of labor are high, so fix and flip repairs you can do yourself saves money.

Moreover, when you’re at the property, the contractors can come to you directly if they run into problems, which can help prevent delays.

If you keep these nine tips in mind, you can greatly increase your chances of not only staying within your budget, but even finishing below it—and that in turn will increase your profit when you sell the property. And with all the money you’ll save and earn, you can start looking for your next fix and flip opportunity.

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12 Jul How to get started investing in Real Estate

To succeed in real estate, you need proper knowledge about investing. Often new investors fail because they do not know how to invest properly. Fortunately, the advice in this article will help you get started. If you’re thinking about investing in real estate, you do not want to miss out on this article.

Learn about real estate before investing money in it. The important part is to gather all the advice and tips that work well in the business.  You can buy some educational DVDs, google some “how-to” articles on line, but the real way to learn the dos and don’ts is to speak to a trusted partner like Summit Capital Management who can guide you start to finish on securing your first deal.  You definitely want to do A LOT of research before you begin.

Think carefully.

Flipping real estate properties might be something that works best for you. Or, maybe you like the challenge of rehab projects where you rebuild from scratch. Further, you may like the steady revenue stream that comes with owning multifamily rental units.  Each specialty requires a different skill set, so focus on what you really like and what you’re good at.  A seasoned investor has a mix of properties in their portfolio to help balance risk and to provide protection from market changes.

Get a feel for the values of properties near yours.

Rent and mortgages in the local neighborhood can give you a much better feel of the value of a house than financial statements. Once you have a good understanding of the street level conditions, you can make wiser decisions.  Be the expert on values in the town or towns that you are interested in.  Know prices differences based on sq footage, # of bedrooms, # of bathrooms, by street, and neighborhood.  You want to find comps within .5 miles from the subject property.

Know your ARV!

ARV refers to After Repaired Value and that is the key to success.  If you know what you will have to pay for a property, and know how much it needs in repairs, and know what the conservative ARV is, you probably won’t lose!  Some people think that you cannot make money in lower-end neighborhoods, and boy they are mistaken!  Many investors make huge profits buying in lower-end neighborhoods as that is where you will find more first time home buyers.  We do deals in high-end neighborhoods and we also do deals in lower-end neighborhoods and love them both!  The bottom line is if that you know your numbers, comps, and ARV, you can make money in ANY Neighborhood

Be careful about buying houses that have issues that you cannot control.

Steer clear or be VERY careful of making purchases in houses that have things that cannot be fixed without huge costs.  Low ceilings, industrial neighborhoods, functional deficiencies, are just a few of the things that you need to factor into your deal if you want to be successful.  Anything can be fixed but a what cost.  We once did an awesome flip in a “higher end” town but due to it being located in a kind of commercial / industrial neighborhood, we couldn’t sell it for the longest time.  We finally did sell it maybe for a loss, so learn from our mistakes, you can’t pick up a house and move it!  Well, you can but it costs a lot of money.  This is just one example of “issues that you cannot control”.

Be Professional.

Successful investors run their real estate businesses like real businesses.  Think about employing a professional property manager if you are buying multifamily tenant buildings.  Use legitimate contractors that are licensed and have insurance to do the work.  Pull Permits!  Although it can be attractive to cut corners initially, you ALWAYS pay for it in the end.   Also, even if you are doing the work (labor) or some it yourself, factor the cost in of someone else doing the work when you are analyzing the deal.

Having access to capital / both liquid and institutional.

You never want your investments in real estate to start draining your liquid cash reserve. Investing in real estate means investing money that you can’t get back right away. Make sure that your day to day life does not get choked up from this.  That is why even seasoned investors who have large amounts of their own cash on hand still use other people’s money.  Emergencies come up, you DO NOT want to be handcuffed or cash poor because you were too frugal in your decision to use outside capital.  Smart investors always use other people’s money and factor those costs into the deal.  If you have a lot of cash sitting in a bank, possibly have  only fund the purchase price with a lending source and pay thefix-upp / renovation amount in cash.  That way you use some of your liquid cash but not all or most of it.

Call or email Summit Capital Today!

You now are equipped with some great advice pertaining to making it as a real estate investor. In order to experience success, you need to apply what you’ve just read and keep learning all you can. The more you learn about it, the better you become at investing in real estate.  Please call, email or go onto our website today so we can connect with you and show you how to begin or advance your career as a real estate investor!

Good Luck!

Team Summit Capital


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12 Jun How to Get the Most When Buying Real Estate

Do you really think that you know absolutely everything about purchasing real estate? With so much to learn about real estate, even veteran real estate buyers are looking for new information. This article can help you by providing tips you may use when you’re in the market to buy real estate.

When looking at residential/owner-occupied properties, make sure that you are looking for a home that will adequately fit your family if you are planning on having children or already do. You should also pay special attention to safety issues, particularly if the house you are viewing has a swimming pool or stairs. Buying a house from people who raised children in it should guarantee you a safe house, but it doesn’t so you need to check for possible issues.

If you want to purchase a new home, do some research into the neighborhoods of any residences that you are interested in. Lots of information about neighborhoods can be found online. Google, Zillow, etc.  Even extremely tiny towns have information available online. Consider the population, unemployment and salary margins before making any purchase to assure that you have a profitable future in that town.

You can often find bargain prices on homes requiring a large number of repairs and improvements. This saves you money on your purchase, allowing you to invest extra capital into fixing your home at your own pace. In addition to customizing the home to your tastes, you are creating valuable equity each time you make an improvement. Be sure to look for what a house could be, not what it currently lacks. It may be that your ideal home lies beneath some ugly wallpaper and dated cabinetry.

When deciding to purchase a large and commercial piece of real estate, make sure you get a trustworthy partner, especially if you are a new investor in this type of property. This can make it easier for you to get qualified for the loan needed when buying the property. You may need a co-signer to get a down payment, and additional credit to buy some commercial real estate.

When looking to buy an investment property, be willing to consider homes that need repair, rehab, or remodeling. As you finish the work, you will be rewarded with an immediate increase in the value of your home. If done correctly, the value will rise more than your initial investment, and you will either be in a cash flow positive situation if you plan to hold the property, or a windfall if you plan to flip it.

It is currently a seller’s market with values that seem to keep rising.  Inventory is extremely low, driving pricing higher, but if done correctly it is still a great time to purchase for both owner occupants and investors.  As long as you buy correctly, you will be protected from future market corrections.

This article should have given you some great tips that will really enhance your real estate buying experience. Smart networking is always a very beneficial practice in the business of buying real estate.

Let the experts at Summit Capital Management show you what end-user/owner occupants will be looking for.  Let Summit show you how to invest in real estate flipping and holding properties.  We are much more than a private/hard money lender, we are your real estate investing partner!

Good Luck!

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12 May What Is a Hard Money Loan?

For a commercial hard money loan, the lending decision is based on the “commercial asset” as opposed to relying heavily on a borrower’s credit, financials, etc…Although most hard/private money lenders will want to see some financials, tax returns, and credit, the overall decision is based on the quality of the deal not the financials of the borrower.  Buyer be warned though that hard/private money lenders do look at those things like credit, financials, experience etc and those factors can determine what rate/terms are offered.

The term “hard money comes from the fact that a loan will be secured by a real, tangible asset. More often than not, this asset will be in the form of real estate. In that sense, a hard money loan is generally a short-term, higher-interest funding opportunity that needs to be effectively handled and managed.  Seasoned real estate investors use hard money as a “tool” in their borrowing tool belt, knowing that it is much cheaper to use hard money than to take on an equity partner.  It is also much safer to use other people’s money and keep yours for emergencies.  As long as you can factor the costs into the deal and the numbers still work, private money is a very viable option for investors of all levels.

Essentially, a hard money lender is any company or person that has extra money to lend. Although there are many unique circumstances regarding the terms and conditions of a hard money loan, put simply, hard money lenders will not offer a large cash amount without the borrower having specific assets, such as a home or property they can use as collateral.  Typically the private/hard money lender will take “first position” on the note and offer you a mortgage like a traditional bank would.

After you approach a hard money lender, they will then calculate the loan-to-value ratio. The higher this ratio, the more difficult it can be to obtain a loan. For example, say you require $50,000 in order to make a $90,000 investment. Your ratio will be $50,000/$90,000 x 100, which equals 55.6 percent. To the lender, this means that they will need to lend you 55.6 percent of the total cost.  This is a very important point to mention; ask what LTV (loan to value) the lender will go up to.  Most want to be in the 55-65% range, but here at Summit Capital, we will go higher to the 70-75% LTV range, giving our borrowers more capital, using less of their cash so they can do more deals!

How Can Hard Money Lenders help you?


For starters, these loans are often given out very quickly — typically within 15-30 days. When compared to an average of 45 to over 60 days when borrowing from a bank, this turnover time is very attractive. If you need cash fast, this approach can be an optimal choice, especially in terms of investment opportunities.

Unlike when you borrow from traditional lenders, you can typically get a loan without as many regulations and limitations. With that being said, hard money loans are not typically the best idea in relation to long-term investments. If you need to make an initial purchase or would like to make a fast investment, then this is when you should consider a hard money loan.  Typical Hard / Private Money loans have terms of 6-12 months.  If you will need longer than that, there are renewal fees and points could be charged, so on those longer loans, private/hard money may not be the best option.

As long as you use a hard money loan properly, in addition to ensuring due diligence throughout the lending process, this option can provide you with a great business opportunity. Don’t be shy to ask a question and really get involved, understanding the full conditions of your agreement.  Hard money loans can be highly beneficial across various situations. While these loans are not ideal for every borrower and every situation, when used properly, they can help you make excellent returns on your small business ventures and investments.

Give the experts at Summit Capital Management a call to discuss further!


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06 Mar Exactly what is a Private Hard Cash Loan, and why would I want one?

2008 new year billboard and cloudy sky

A private / hard money loan is a short-term home loan generally used for investment properties. We can fund the purchase and/or remodeling of a home. Hard money loans can be acquired quicker than traditional home loans and the qualifications are more versatile, too. A hard money loan is a tool often utilized by both fix-and-flip financiers and financiers planning to construct a rental portfolio.

Who Needs Hard Money

Real estate investors, home flippers, amongst others, will use it to fund projects because you can frequently borrow much more than a bank will lend you on a per deal basis!  If you know you can purchase a home and turn it quickly at huge revenue, and you can’t get a traditional mortgage, it might be one way to go. Some financiers utilize hard money to get into the home, do some quick fixes to raise the properties worth, then get a new loan (based upon the home’s improved value) from a bank to pay off the hard money lender.

Hard / Private cash loans are quickly accessed and cut through the red tape. If you can establish a relationship with a good hard money lender, you can get funds within a week or two, with little money down, and many of your costs rolled into the loan.

Will I require an Appraisal?

Prior to a Hard Money lender provides you the funds for your job, the majority of will require an appraisal. An appraisal is a precise estimate of what a property is truly worth. It takes a licensed appraiser to assess a house and estimate the real value of a home and what repair work are had to the home. By having the home appraised, the lending institution will know precisely what the value of the home is and therefore will know exactly what they are willing to provide to you. Hard money lenders have to understand the specifics of the Home due to the fact that they wish to make a return on their cash too.

That is why they are lending you the money quickly for a home flip due to the fact that they know that you will earn a profit and in return they will make a profit by giving you the money you need in the form of a loan quicker than any other kind of loan.

What are the costs connected with a Hard Cash Loan?

Rate of interest for hard money loans typically vary from 12%– 14% and the points on the loan usually range from 2-4. But once again, all lenders are various. Some hard money lenders will add points after a particular quantity of time, and some hard money lenders will include a point at the origination of the loan. Hard Cash loans likewise generally have costs. Fees associated with underwriting, reward charges, inspection costs, and other costs.

Normally the terms for a hard money loan is between 6 – 12 months. If you exceed this term, there are typically renewal charges and points to pay. When rehabbing (repairing and repairing a residential or commercial property), you want to work quickly and pay the loan off as rapidly as possible. A lot of rehab tasks normally take about 3 months to 6 months to complete. This is typically adequate time to repay a hard money loan prior to it resetting costing you more money.  Typically, hard money loans are not utilized for long term loans.

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15 Dec Turn Your Real Estate Investing Into a Success Story

qInvesting in both residential and commercial real estate requires that you pay attention to your values and your costs; Start by not overpaying for property. Look at the property values yourself and make sure the value is what you expect. Then don’t overspend / over improve the property unless you are 100% sure you can get the money back at the resale. It is important that both of these factors are closely scrutinized to ensure the project will prove to be a good deal for you.

When you invest in real estate to rent the property, make sure you are able to get your money back within a reasonable amount of time, or you are ok not being able to get it out. Some people use longer term holds as a tax deferment tool, so if that is your goal you may be ok leaving money in the properties. Just remember that If it takes you many years to get the money back in rental payments, then it will be hard for you to use the money on anything property related.

Property values go up and down; don’t make the assumption that it will go up only. This is a bad assumption to make when dealing with real estate. Every deal should be looked at with multiple exit strategies so if you do happen to time the market wrong and find yourself in a downturn and unable to sell the property, you have a backup strategy to weather the storm. One back up strategy is to look at all of the deals as possible rentals if things go bad. Make sure the rents you would be able to collect offset the expenses / holding costs you will have to incur.

If you are not proficient in basic construction and all of the systems that go with a property, a good idea could be to hire a professional inspector to come out and see the property you're thinking of putting your money into. You may think that you can just look over the property on your own to find problems, but if you're not trained you may miss some things. When problems are found, you should make sure to get some money off of the property and or have the seller fix them for you. Good Luck and remember to call Summit Capital Management for your real estate funding needs!

You should have a handyman when you buy a real estate investment property. Otherwise, your extra cash will be depleted by high repair expenses. A good handyman can help make sure any tenant emergencies are taken care of after business hours. Build your real estate investment buyers list with online ads. For example, you could use social media, online ad sites such as CraigsList and/or the local newspaper to draw attention to the properties you have on offer. Be sure to retain contact information for every person who shows and interest so you will have a well-rounded contact list as you accrue new properties.

Hopefully, this article has helped you see that there is more to real estate investments than really meets the eye. It is important that you take baby steps when you finally set your eyes on a property and use what you have learned today. After all, the more you know, the better your chances of turning a profit.

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08 Sep Summit Capital is in the News

We are pleased to announce that Boston Voyager has written an article about Summit Capital!

It highlights how Chris and Mark started the company and goes into what they think the future holds for us.  You can read and exert below:

Today we’d like to introduce you to Christopher G. Gallo.

Mark and Chris were High School friends who lost touch during the college years but got reacquainted by a mutual friend who noticed that they both were doing similar projects in Real Estate Investment and Development. Mark and Chris met for a coffee and noticed that they had very similar goals, values, and business models and thought they should try doing a deal together. One 2 family in Brockton on Denton St turned into a 100+ building 400+ unit Real Estate Portfolio servicing the Boston South, South Shore, South Coast markets. They were constantly raising capital for their deals and using many sources of banks, private investors and private capital to do so. They realized that there was an underserviced Investor (them) that needed access to capital to fund real estate deals, and many times banks would either not be interested or move too slowly for these investors….Continue reading at

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25 Aug Do’s and Don’ts When Flipping a House

Summit Capital is a local, family owned, MA and RI Hard Money Lender specializing in creative real estate funding for both the novice and seasoned investor.  We will work with you to ensure that you get the funding you need at the most aggressive terms possible for your real estate investment.

As a service to you, we offer this list of Do’s and Don’ts to help you move forward with your house flipping project.

The Top Do’s and Don’ts When flipping a house

We all know that flipping a house can have big rewards; but what about the risks involved? With this in mind, we have put together our list of do’s and don’ts when flipping a house. Wondering where to buy and how much to DIY?

When the housing market was on the upswing in the late nineties and early 2000s, it was easy to make money. People were making fast and big profits on their investments. Then the market crashed and everything changed.

Because of this it is important to use due diligence when making this kind of investment.

Do Hire a Trained Home-Stager

There are many real estate agents that are trained in the staging process.  Make sure you find someone who has the background to do this right. A home that is staged and furnished correctly will sell quickly, and this is what we want.

Don’t be afraid to “low ball”

If we don’t ask we will never know if the offer will be excepted.  The seller may be insulted, but maybe they won’t and you can save thousands, just by asking.  Just be careful because in a “hot market” low balling could cost you the deal.

Do know what you’re getting into

Make sure you find out what renovations the house needs before you buy. Sometimes the necessary improvements are so expensive that the deal just wouldn’t make financial sense. Bring a contractor with you when you tour possible flip properties to determine the extent and cost of needed repairs.

Don’t take on something you cannot handle

Know your experience level and don’t try to do a complete gut down to the studs on your first flip, Make sure you always consult with a professional before moving forward on homes with construction issues that you are not familiar with because things like; foundation, support beams, asbestos or mold issues could cost you dearly.

Do keep location in mind

We all know that location is key to selling a property, but how do we know when we are getting a good one? Try looking for dilapidated homes on nice or up and coming neighborhoods.  Flipping houses in these areas can only have an upside.  Also don’t over improve your house, unless you are 99.9% sure you can recoup the costs.

Don’t hold it too long

Keep in mind the golden rule of 180 days.  60-90 days for renovation and another 60-90 to sell.  You can’t make money by holding on to properties too long.  If you keep up a quick pace, you will be on the road to success, in no time.

Don’t get in over your head with DIY

Long hours spent on DIY remodeling projects — can lead to a bigger profit margin, but only if the work happens quickly and looks as good as a professional job.  If you are confident in your abilities then go for it, but make sure you know what you are doing before you get in too deep.

Do secure your financing ahead of time

Contact us today to get your financing secured before you find that ideal property.

If you have your money set up beforehand you can move quickly when you find the right property.  Winging it probably won’t yield the best results. There is nothing more frustrating than finding “the one” and not having the cash to move forward on it.

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