It’s no question that the major personalities on HGTV today have the money to afford fixer uppers, with more than a little wiggle room for error. But what about the average person looking to break into the biz for the first time? Their wiggle room is certainly smaller, and their chances for error greater. So where do they go when they need to obtain funds fast for a fix and flip?
Oftentimes, people will turn to commercial Texas Hard Money Lenders. Commercial Texas Hard Money Lenders are untraditional alternatives to public lenders like banks and credit unions. What these untraditional, private investors do is evaluate the potential and collateral of the property. In this way, private investors are able to approve a wider range of people compared to public lenders because they highly consider the property’s potential profit line first. Though your financial history will be relevant to them, collateral comes first.
Speed is one characteristic of hard money that can come in handy when obtaining a property off a competitive market. The ability to obtain the property with all of the ideal characteristics for a fixer upper will be ideal. Committing to a home that won’t provide any nasty surprises after the purchase will lead to more success in the long run. Being able to get funds fast may just allow you to get that ideal property for flipping. Commercial Hard Money Lenders allow for this and flexibility. Because they are more likely to approve you for a loan than a bank, it is also more likely that they will allow a little flexibility when it comes to repayment. The repayment period of hard money loans is short. This lends itself to fixer uppers because the goal is to fix, flip and sell quickly.
While the short-repayment period and the fast funds make hard money a great option for people looking to flip, there are a few things to know about Texas Hard Money Lenders before diving in. First, Texas Hard Money Lenders have high interest rates. Their ability to approve a wider variety of borrowers is balanced by their higher interest rates. Coupled with a short-repayment period, this option may not be ideal for everyone, though there are benefits to consider. Second revolves around reliability. Reliable commercial Hard Money Lenders are out there, but so are unreliable agencies. Being confident that your lender supports the project and won’t pull out at the last minute is obviously going to be a concern to have. Researching their past clients and projects is one way to go about ensuring they are legit, but so is hiring a real estate attorney. A real estate attorney will be able to evaluate and determine if they are really a reputable agency and if they have any hidden fees and stipulations you may have missed. Doing thorough research will help you determine if Texas Hard Money Lenders are right for you and your personal financial situation, even though their process and typical benefits lend themselves to those fixing and flipping properties.
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.