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
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
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
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
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.
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
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.