Let’s face you are on here to find quicks tips to making money in real estate. Becoming a successful investor or hard money lender in California is the end goal. If you manage your money well and pick solid property you can find your fortune fixing and flipping. It will not happen overnight, but here are a few tips to get you on the right track.
One of the first things you want to do is scope out the area that you think you want to flip in. Most of the time you can save some cash by looking for auctions that are being held. Most of the time these homes are being foreclosed and will have cheaper prices than cold searching through a company.
The only thing you need to worry about is the competition. These auctions are usually held in the traditional sense where you have an auctioneer and multiple people there with you. If your purse is a little light this may be difficult. Most people can circumvent this by hiring a solid hard money lender in California that is able to lend you enough money to purchase and pay for the home you are looking to buy. Most of the time you will need to have a nice amount of collateral at stake.
When you are purchasing the home or property you want to make sure you can make money back when you are attempting a new investment. Now, this can vary person to person, but as a general rule of thumb most investor get a goal for return. For some investors, this means they will not take on an investment unless they can make a $25,000 profit on it. Others want to make enough to pay off their debt. The main thing you want to focus on is what works for you.
Use your property to your advantage
Let’s say you have a property that you are looking to purchase, and instead of selling it at a higher price you opt to keep it. Depending on the area and the quality of the home you could use the property as an addition source of income. You can rent it out to a family, or you could turn it into a hostel and charge people vacationing in your area.
You can then use the funds to ask your hard money lender in California for a short-term bridge loan. After you can purchase another home and flip the property, as well. Once you get good at this method you could end up owning multiple homes that provide you with a recurring income that can help support future flips.
You should start out on the lower end
This may seem like an obvious tip, but if you choose to purchase low-end homes you may be able to save some money. Most of the time they are cheaper which can potentially mean less of a loan you have to apply for. Most hard money lenders in California will be able to work with you and your new properties, as well.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.