Hoarder houses can be such a disaster that it’s difficult to assess what needs to be done before it’s cleared, but that doesn’t mean they’re not good investment properties. You can use Texas Hard Money Loans to fund the deals as long as you’ve prepared a solid plan.
Under ordinary circumstances, you’ll have a good idea of the amount of work necessary to complete any fix-and-flip. While you should budget for unforeseen expenses because just about every house has an oddity, chances are your whole project won’t be derailed by a surprise finding. Hoarder houses are different. They can be packed solid with debris from floor to ceiling, totally obscuring the condition of the property.
The medical community is still trying to establish what happens in the minds or hoarders. Initially, hoarding was believed to be an offshoot of obsessive-compulsive disorder, but scans show these individuals have abnormally high brain activity when they’re faced with a decision to throw something away, even when they know it’s junk. This stimulates them to the point where they’re paralyzed from making a decision, and so their clutter grows. Their isolation and depression tends to as well.
Adding to the challenges, there are often infestations and animals kept in the homes. The hoarder, genuinely unable to make the decision to so much as toss a piece of junk mail, cannot manage these issues either. Ergo, the homes are not only packed with debris, but are also unsanitary and unhealthy. It’s no wonder that when TV shows depict the big clean-out, the crews going in wear hazmat suits.
Risk Less by Planning for a Complete Teardown
Part of getting Texas Hard Money Loans involves demonstrating your plan for the property, but if you can’t even see the walls, it’s impossible to determine the condition they’re in. They could have holes, mold, damage from infestation, and more. In other words, the only way you can be sure you’re going to have success with the project is to plan for a worst-case scenario; tearing everything inside the home down. Other costs worth factoring in are pest control and professional junk removal. The latter is beneficial because these people do removals every day. They have the equipment, materials, and expertise to get it done quickly and cost-effectively, as opposed to your regular contractor who may or may not have ever worked on a hoarder home before. It’s worthwhile to get estimates from more than one company for this.
Set Your Expectations Based on Real Numbers to Be Successful
Anytime you apply for Texas Hard Money Loans, you have to demonstrate that your plans make fiscal sense. That’s a given. When it comes to hoarder houses, you need to work backwards, starting with what the finished property will be worth, then subtract all your expenses (remember, you’re going down to the studs and there will be additional costs too), remove a portion for yourself, and then determine what price the property is worth. This is one situation where it may be incredibly difficult not to make an emotional decision, particularly if you’re negotiating a price with the hoarder, but it’s important to focus on the numbers. Only then can you put Texas Hard Money Loans good work by giving this person the chance to walk away and start over, help the neighborhood, and invest in your future too.
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.