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.