Texas Hard Money Loans are a great way to fund fix-and-flips and turn a profit. Optimize your projects with a few key strategies that boost ROI.
1. Check and recheck the value of the property. There are many tools on the market that can help you identify what any given property is worth. Don’t rely on a single method. Run comparative stats and bring out value experts if need be; appraisers, contractors, and other rehabbers can help you detect issues that decrease property value, so you don’t wind up paying more than the property is worth. Don’t be afraid to use information you find out to negotiate a lower price and be prepared to walk away if you aren’t going to get at least 20% return. Obviously, 25% is better and you’re golden if you hit 30%, but don’t accept those numbers at face value. Always recheck with multiple methods.
2. Research the neighborhood well. All too often, rehabbers get caught up in what makes a house look amazing and lose sight of what will bring profit. Things like paint and fresh fixtures are usually good bets, but granite countertops or a luxury bath remodel? Maybe not. Learn as much as you can about the features and upgrades in other homes in the area, so that you’re keeping your upgrades on par with others. If you go too high-end, you won’t get ROI.
3. Don’t pay more than you have to for funding. There are Texas Hard Money Loans for every circumstance, and each lender will have a different pricing scheme. Obviously, the less you pay to borrow, the more money you’ll have in your pocket at the end of the day.
Work with a Broker Who’s as Eager as You Are
A motivated broker is going to bring a unique blend to your project. First and foremost, he’s going to shoot straight with you. If there’s a problem with anything you’re bringing to the table, he’s going to tell you. That may sound counter-intuitive because he makes money on the deal too, but the reality is, those who work in Texas Hard Money Loans want to work with the same clients repeatedly. Not only will he be transparent, but he’s going to work hard to find the best rates possible for you because he knows you’re going to be successful and wants to be involved in your future deals. When you’re working with the right person, it’s never about just this one property. It’s about building a relationship.
When you work with a team that’s the real deal, you’ll all be prosperous.
At the end of the day, your Texas Hard Money Loans will go further if you surround yourself with a solid team. Learn how to evaluate who’s really in it for the long-haul. That includes your finance team and anyone doing work on the property, from your contractor through tradesmen, and be sure to treat them like the integral partners they are, so they’re motivated to continue increasing your returns.
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.