Speculative building is a hot topic these days. But what exactly is it and what are some secrets the pros use to make money?
First, for the uninitiated, let’s look at what spec building is. Spec home investing involves building a single-family or multi-family property without having a buyer lined up already. It can be risky — spec builders build without knowing for sure if they’ll be able to find buyers and turn a profit, partly because they’re at the mercy of the market and a wealth of other factors.
That risk can really pay off, though. Spec housing development doesn’t have as much competition as, say, flipping. Also, instead of the surprises that most flippers have in store (termite damage, mold, etc) you’re able to start with a clean slate.
Mitigating the risk of spec building
Thankfully, there are some ways to mitigate the risk. Here are four secrets the experts say will help you do just that:
Getting funding for spec home investing
As we mentioned above, having bad credit, a poor history, or low funds won’t necessarily prevent you from getting a loan for spec home investing. A bank loan? Perhaps. But hard money lenders use collateral rather than credit scores and bank account numbers to determine eligibility, so it’s all within your reach!
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.