Is House-Flipping with Hard Money Lenders in Texas a Successful Venture?

House flipping using funds from hard money lenders in Texas is still popular, but many people looking to get into the industry wonder whether it can still provide returns like it did in previous years. Not only is it a lucrative business, but it’s also growing, which means those who know how to do it well are seeing in excess of 50% ROI.

The industry saw a slight decline in the number of flipped homes that were selling earlier this year. However, when Realty Trac released the third quarter results, there was actually an 18% increase over last year. With the economy recovering, buyers are getting pickier about what they’ll accept in a home, and they’re looking for houses that are ready to be moved into. The number of flipped homes has remained relatively constant since the last have of 2009, and aside from a few quarterly blips, hasn’t changed much more than a small fraction of a percent in years.

What has changed, however, is the amount of profit rehabbers are bringing in. Although Realty Trac didn’t cover any Texas real estate markets, several regions throughout the country boasted an average profit of more than $200,000 per sale, and one area even topped $350,000 profit. In some of the more modest markets, house flippers received at least $40,000 per rehab project.

There is presently a perfect storm occurring in many markets across the country, which bodes well for rehabbers. Home values are on the rise, and people want turn-key homes. Hard money lenders in Texas have money ready to lend for these projects, though it’s worth noting that the number of homes that are ideal for fix and flip projects is shrinking.

Get Funds from Hard Money Lenders in Texas, Be Successful by Appealing to Your Buyers

Hard money lenders in Texas can give you the funds you need to do a home makeover, but if you want to get the most for the money, you need to identify who the buyers are in your particular market, and design the home for their tastes. This time around, Realty Trac focused on millennials and baby boomers who are buying homes, and noted how each group is looking for something very different in a new home. As you approach a new project, check out the demographics and see who inhabits the neighborhood. For instance, millennials tend to look for open floor plans and low-maintenance features. They’re also not into pricey details, so you can skip things like crown molding. Boomers, on the other hand, still appreciate the fine touches that make a house more elegant, though they’re also budget conscious and don’t want an overwhelming mortgage.

Competition is tough for rehab homes, and working with hard money lenders in Texas can help you gain an edge.

It’s clear that the profit is there, and that people in the business of flipping homes are getting amazing ROI right now. However, the diminished inventory makes it difficult to find the right home to renovate, and experienced rehabbers are jumping on them fast. When you have financing lined up with hard money lenders in Texas, sellers are more-likely to work with you because they know the transaction will be swift and easy for them. Be true to your buyers and make educated decisions- incredible profits are still being seen across the industry.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

  

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

Using Swift Hard Money Loans, Texas House Flippers Reap Benefits

In the real estate industry, being able to act fast is essential to your success. Using hard money loans, Texas house flippers can move swiftly, to generate bigger profits.

It’s always said that “money talks,” and in the real estate industry, this is true now more than ever. Years ago, everybody was in on the house flipping game. Nowadays, it’s usually just seasoned veterans and starry-eyed virgin homeowners that eyeball the properties, but being able to act fast and put money on the table remain absolute essentials for being successful.

Having access to solid funds gives you an edge in negotiations. As any experienced rehabber knows, many original homeowners are eager to unload their “money pits,” because they don’t even know where to begin when it comes to repairs. The idea of correcting defects in the home is so intimidating, that they’d rather grab what cash they can, and exit before the deal falls through. When you have the expertise to make the necessary repairs and improvements, and have exercised diligence, there’s a good chance you can offer the seller far less than they’re asking if you’ve got fast access to cash.

By having access to hard money loans, Texas rehabbers also win more bids. Experienced home sellers and real estate agents know what a hassle it is to go through the process of obtaining a traditional mortgage. Some policies that have recently been enacted can add weeks onto the wait time, and that’s only if the buyer’s mortgage is approved. Because of this, sellers often jump at the chance to work with someone who can streamline the process.

When Providing Hard Money Loans, Texas Lenders Have Minimal Eligibility Requirements

There are a lot of similarities between the people who provide this type of financing and rehabbers. First of all, you’re both investors. Secondly, your goal is to pour yourself into a project, and make a swift departure while securing a profit. That’s exactly what they do, so they don’t worry too much about your personal history. Instead, they evaluate the value of the project you’re working on, and what the market will bear for the home. Using hard money loans, Texas rehab funding can be provided in days, versus the weeks and months that traditional banks take.

There are some things to consider before going for hard money loans, Texas rehabbers should know about.

Having a solid exit strategy is imperative, as the hard money loans Texas lenders provide are generally short-term. This means that you’ll need to be certain you can flip the home within that time period, or have an alternate mode of funding or financing lined up for when the period ends. Most experienced rehabbers are very familiar with this anyway, and have a strategy, timeline, and goals mapped out before an offer is placed on a property. However, if governmental red tape throws a proverbial wrench in building alterations, or other unexpected delays occur, it’s important to have a contingency plan lined up. When this is taken care of, getting the funds needed to flip homes at a rapid pace and making a serious profit is much simpler.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

  

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

With Hard Money Lenders, Texas Homeowners are Avoiding the Pitfalls of Foreclosure

There’s an interesting trend occurring among people in danger of foreclosure. Using funds from hard money lenders, Texas homeowners are converting their primary residence into a rental.

The housing market has rebounded considerably, and many people are shrugging off the after-effects of the recession. However, financial issues can strike any family at any time, and very few of us have had time to set up safety nets yet. Most of the country is living paycheck to paycheck, knowing that the loss of a job or even an illness can mean total financial ruin. Interestingly, it’s hard money lenders Texas financial planners are sending people to, because they can help people transition to a new home in order to rent out their primary residence when these issues occur.

It’s a very simple concept. As people realize they’re in danger financially, moving to a more affordable home becomes essential. Unfortunately, sometimes houses just won’t sell, or the family wants their home back when the financial situation improves. By converting it into a rental, even temporarily, the homeowners become landlords, and can have their tenants cover the monthly mortgage. In some cases, homeowners actually earn income from the deal, while having another party pay down their debts.

Obviously, people who need to move because their house is in danger of foreclosure aren’t going to have a lot of cash to make the transition occur. By obtaining a loan from hard money lenders, Texas homeowners can cover the emergency expenses, and start generating income from their property.

Is Getting Help from Hard Money Lenders Texas Foreclosure Kryptonite for Everyone?

It’s important for homeowners to research their market to ensure that the house will rent out at a fair price, and still cover its mortgage and upkeep. In this day and age, most homes will do this, but it’s imperative to be certain before moving forward with the plan. Landlords will be responsible for the property, and whatever happens on it, so upkeep will be important, and tenants will need to be thoroughly screened. While there is some work involved in being a landlord, this process is saving homes and helping families recover financially after adverse events.

Using Funds from Hard Money Lenders, Texas Homeowners on the Verge of Foreclosure Can Prosper

Renting out a primary home in order to avoid foreclosure can be a family’s saving grace, and it’s a win-win solution for everyone involved. The family keeps their home, sometimes generates income, and another family gets a wonderful temporary home. Using funds from hard money lenders, Texas homeowners are able to get reestablished, but the process might not be right for every situation. It’s important to have a plan in place to ensure that the loan can be paid off swiftly, and that the property qualifies for this type of assistance. It’s generally most helpful when a family has significant equity in the home already, and doesn’t want to lose that nest egg or wants to retain the property for later. If you’re considering becoming a landlord, be sure to talk with a specialist before making a final decision.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

  

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

Work at Home? Using Hard Money Loans, Texas’ Self-Employed Can Become Homeowners

It’s kind of odd the way people who follow the American dream and choose to start their own business get penalized. In many cases, it disqualifies them from becoming homeowners with traditional mortgages, but with hard money loans, Texas’ self-employed people can own a home, too.

“Good Luck Getting a Mortgage.” That was CNBC’s message to the self-employed when they covered just how difficult it is to buy a home when you’re your own employer. It’s hard enough to get a mortgage as it is, but those who work from home or freelance have an even more difficult time. A study from Zillow discovered that self-employed individuals only get six loan offers for every ten that traditional employees do.

Difficulty obtaining an offer is just the start of it, though. CNBC reported that some banks are demanding several years of tax returns, corporate tax returns, and even Googling their applicants. One unlucky would-be borrower was quizzed about the names of clients who were using her freelance writing services, which she aptly summed up as “intrusive.”

Data shows that self-employed people make about 81% more than those who work for traditional employers, but that doesn’t seem to matter to banks. Entrepreneurs wind up having to fork over an average down payment of 15.3% percent, while their salaried counterparts generate a mere 14.6%. Using hard money loans, Texas’ self-employed can get around some of the issues, but very few people are familiar with the method, even though it’s been around for seemingly forever.

When Considering Hard Money Loans, Texas Borrowers Don’t Have to Worry About Eligibility

When doling out hard money loans, Texas lenders tend to focus more on the value of the property being purchased, rather than the financial background of the individual applying. This makes it much easier to get approved, and far less “intrusive.” Because the self-employed have so much more paperwork to manage with a traditional mortgage, the length of time it takes to seal a deal can be months, if it ever happens at all. With this method, the timeline is much shorter, even compared to what a salaried employee might endure. Loans are often funded within days, rather than the weeks or months a traditional path might take.

To get advice on hard money loans, Texas borrowers should always consult a pro.

There are many varieties of hard money loans Texas lenders specialize in, and there are solutions for just about every circumstance. While some options are geared more towards people who purchase with the intent to rent or flip, certain packages are put together especially for people who are self-employed. For this reason, it’s always a good idea to speak with someone who handles several types of loans, so you can be sure you’re getting the right one for your needs. CNBC’s succinct quip was sadly true about the traditional mortgage industry. Thankfully, there are other means available that put homeownership within reach, even for those who write their own paychecks.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

  

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

Eager to Move? Using Hard Money Lenders, Texas Homeowners Can Buy Before Selling

There are many reasons why a homeowner might want to move before his house is sold, but it’s difficult to do when the funds are tied up in a property. With help from hard money lenders, Texas homeowners can receive what’s known as a “bridge loan,” so they can move when it’s best for them.

For most people, their home is the single biggest investment they will make in their lifetime. Although they may trade it out a few times over the years, the majority of their income is poured into the property. That money gets locked down tight, and banks aren’t keen on releasing any of it back to the homeowner.

However, we also live in a world where moving for the sake of employment is often necessary. There are a myriad of other issues that might come up, forcing a family to have to pick up stakes and move quickly and unexpectedly as well. Unfortunately, with the money tied up in a house, homeowners are stuck.

Occasionally, a home equity line of credit can be issued. This is where the bank will give you some of the money you’ve paid, so you can use it on whatever you need to. However, this option is routinely stripped away once the bank finds out that your house is on the market. Using hard money lenders, Texas homeowners can have access to the equity in their home, even if they plan to move right away.

Working with the Best Hard Money Lenders, Texas Bridge Loans Can Be Right for You

The concept is called a “bridge loan,” simply because it’s designed to be short-term, to help bridge the gap between your move to a new home, and the time your old home is sold. The short span isn’t generally a problem though, because most homeowners only need a couple of months to get their old home sold. With help from hard money lenders, Texas homeowners can obtain a bridge loan, and use it to cover the down payment on their new home. The loan is generally based on the equity you have in your existing home, so even people with poor credit or other issues can qualify for this valuable service. So, not only are they easy to obtain, but they’re perfectly designed to fill the gap and make your housing transition incredibly simple.

When working with hard money lenders, Texas borrowers have access to expert advice.

Traditional wisdom says that you should always sell your home before you purchase a new one, but in the real world, that isn’t always possible or practical. Using bridge loans from hard money lenders, Texas homeowners have another tool in their arsenal when trying to navigate the changes of life. Additionally, the people who provide them are experts in the industry, and are familiar with numerous types of financing options, so you can get all the information you need to be sure that you’re choosing the best option for you.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

  

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

How to Quit Your Day Job With Hard Money Loans Texas

If you are tired of the daily grind, it may be time to get out of the rat race for good. With hard money loans Texas you can make full time money as a real estate investor. You get to set your own hours, be your own boss, and have more control over your work life. 

If hanging out at the water cooler and discussing the office gossip over coffee while you make less than you're worth is becoming old, it may be time to look into hard money loans Texas. Texas hard money loans are a specific type of collateral based real estate loan that can help almost anyone get started in real estate investing. Real estate investing can help you make money and get you out of the office, for good. If this sounds like the job for you, keep reading to learn more about how hard money loans Texas work and how you can use them to your advantage.

Texas hard money  loans are cash loans given by private investors and investor groups. They are based on the potential value of the property you want to buy as an investment. You can usually borrower up to 80% of the property's value and you can use other property you own (like your home or another real estate investment) as collateral to borrow more than 100% of the investment property purchase price. This is great news for you because it means that with hard money loans Texas there is little to no money coming out of your pocket.

You can use hard money loans Texas to buy a fix and flip or other short term investment property. You can also use them as a short term bridge loan to help make up for capital that you are expecting soon. Really, the possibilities are limitless, unlike that cubicle job you have right now.

So, what are you waiting for? Get started with hard money loans Texas today!

Learn the ins and outs of Texas hard money by calling us at Level 4 Funding. We can walk you through the process and help you on your journey to building your real estate empire. Who knows, you may be the next Donald Trump.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

Tips from Hard Money Lenders Texas: What Makes a Great Real Estate Investment

Hard money lenders Texas know that not all real estate investment properties are created equal. There are some features that make certain properties better investments with a higher potential for earning large profits.

If you are interested in real estate investing, the first thing you need to do is find hard money lenders Texas to help you with your loan. Once you have found a lender you trust, it's time to start searching for a property to invest in. Whether this is your first investment property or your 50th, there are a few things you need to keep in mind as you find the perfect property to invest in.

1. Choose your location wisely. You can change most things about a property, but you can't change the location (unless it is a mobile home which I don't recommend as an investment property). If you buy a home in a bad neighborhood, it doesn't matter what you do to make it nice, you will not be able to sell it for as much as a comparable home in a sought after area. Do your research on neighborhoods, schools, and even streets to find a house in a desirable location. 
2. Don't take on too much. If you are planning to do a fix and flip with your Texas hard money loan from your hard money lenders Texas, don't bite off more than you can chew. If you don't have the budget to fix the roof, HVAC system, and replace all the windows, choose a home with less work to do. 
3. Don't offer list price. Always negotiate. With your hard money loan from hard money lenders Texas, you will be able to buy the property with cash. This makes your offer much stronger than a credit offer so you have some room to negotiate price. Use this to your advantage. 
4. Have the home inspected. Chances are you will be buying a foreclosure or auction property and it will be sold as is. However, you should still have the home inspected to make sure that no unforeseen issues come up. This will help you stay within your budget and timeline. 

Once you have chosen your property, make sure to complete your renovations in a timely manner and stay as close to budget as possible. Use your Texas hard money loan to fix up the property quickly and sell it for top dollar. Once you have paid back your Texas hard money lenders, the rest of the profit is your to keep. 

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.