Fixing and flipping homes has become so common in popular media that there are a number of various shows dedicated to every variety of fixer upper, inspiring viewers to seek out easy ways to fix and flip their own properties for a profit. Read more below to find out what opportunities you can find with Texas private money lenders.
Chip and Joanna Gaines are one TV couple that has taken the world by storm, and have even evolved into their own brand. Watching the show, it’s easy to become inspired to seek out local properties with potential for profit. If you’re someone who doesn’t come from readily available wealth, like those running a highly rated and successful reality series, you can turn to Texas hard money lenders to help fund your project.
Private lenders that offer hard money do a few things differently than banks and other public lenders. With the ability to approve a variety of borrowers, as well as offer speed and flexibility, lenders that offer hard money are a great option for ordinary people looking to fix and flip.
How Hard Money “Lends” Itself to Fixer Uppers
Oftentimes, the ability to fix and flip relies on a market with available properties—and if the market is limited, with few properties with high potential value, the ability to compete on the market is essential. This is what makes Texas hard money lenders so attractive.
Unlike traditional lenders, private lenders who offer hard money are usually able to begin the loan lending process immediately—literally as soon as the day of, which is not something public lenders can accomplish. Public lenders can take as long as a month or more to begin the loan lending process which, if bidding on a competitive market, could be the difference between obtaining your dream property and having to start from scratch all over again.
Hard money is also lending itself to fixer uppers in terms of the repayment period. A short repayment period falls in line with the timeframe of fixer upper, given that it is renovated without any major problems and sells fast. Though, if the property isn’t selling on an ideal timeframe, it’s possible to work individually with your lender and work out an extension. It isn’t unheard of and part of what private lenders offer. Their tendency to focus on the value of the property as an investment compared to the borrower’s
How to Know if Private Lenders Are Right for You
While private lenders have a variety of attractive characteristics that make them great options in situations of fixer uppers, they are not for everyone. Because of their ability to work faster, they have much steeper interest rates—and they can be as high as 5% more than other lenders on the market. Experienced house flippers may be able to handle the extra costs.
However, considering how the higher rates will factor into the repayment period will be essential. Having a strong financial background is not always necessary when working with Texas hard money lenders, but it may be necessary to those flipping for the first time. After all, as much as we all would like to follow in the steps of Chip and Joanna, we all start somewhere, and just because hard money is a solution for some, it isn’t one for all.
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 and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.