Category Archives: private money lender Texas

Just What the Doctor Ordered: Buy One Property Annually to Retire Comfortably

Could adding one property per year to your rental property portfolio help you retire comfortably? For Dr. Dat Tran, this strategy is just what the doctor ordered.

Dr. Tran is an internal medicine physician practicing in the metro Phoenix area, with 35 prestigious years of medical experience under his belt. Originally from Japan, Dr. Tran moved to the US and ultimately to Arizona because it was where his wife truly wanted to be. He takes great pride in caring for his family, and for others.

When asked what his biggest motivation is in life, Dr. Tran says he finds true fulfillment in taking care of others. He loves the medical field and his daily ability to help and heal. But he also knows it’s time to start thinking about his retirement and securing a strong financial future for his family.

Securing an strong financial future

At the advice of trusted friends, Dr. Tran started investing in real estate and is slowly growing his portfolio of rental properties to help fund his retirement. Prior to 2017 he used a variety of lenders for his real estate purchases. Then a trusted colleague mentioned he should try Level 4 Funding.

Dr. Tran reached out to Level 4 Funding and connected with loan originator Mark Gowlovech. Having experienced mediocre service in the past when it came to loan requests, Dr. Tran was especially impressed with Mark’s speed and efficiency.

“Very fast, very quick, very helpful” said Dr. Tran of his experience with Mark Gowlovech. He is glad he took his friend’s advice and was thrilled with the results. With Mark’s help, Dr. Tran received his loan funds in record time and wrapped up his most recent property purchase in Avondale in March. Now he’s one step and one property purchase closer to retirement.

Could real estate fund your early retirement?

Dr. Tran is not alone in leveraging real estate as a key component of his retirement and financial strategy. Though the real estate market will always experience ups and downs, many physicians and other professionals still see it as a viable retirement funding solution.

Physician’s Money Digest reports that some successful physicians endorse a simple retirement strategy from their mentors—“Buy one real estate investment property a year.” In one example, a well respected physician who was also a savvy real estate investor shared that he had “technically retired years ago, but had continued working simply because he enjoyed it.”His simple and effective strategy? You guessed it, buy one real estate investment property per year.

By the numbers

This retirement strategy is certainly not restricted to physicians. But can only one property per year truly make a difference? As this one-per-year real estate purchase model shows, by year 20 the numbers truly add up:

Assumptions:

· All properties purchased are single family homes.

· Each was purchased with 30% down private hard money loan, up to 4 properties financed at a time.

· Property values are modest, at only $100,000 on average.

· Average cash flow per property is extremely achievable—$400 per month.

· Once each property is paid off, it cash flows at $800 monthly.

· The Case-Shiller index was used to estimate a 3.4% property appreciation rate.

10 Year Summary:

· 8 properties were purchased in the first 10 years of this simulation model, just short of goal.

· 4 homes are completely paid off.

· Cash flow by end of year 10 is $57,600 annually.

· Portfolio property value is $750,000.

· Total investment so far is $300,000.

20 Year Summary:

· Properties continue to be purchased at an average of 1 per year.

· Portfolio property value is $2.8 million at the end of year 20.

· Cash flow reaches $172,800 per year.

The case study concludes that these are conservative estimates which most people can replicate. The numbers start to snowball around the 10 year mark, and many would agree that an annual income of over $170,000 in retirement qualifies as “comfortable” and then some.

Expand your funding options to escalate success

A 20 year retirement model looks great if you are 30 years old and want to retire by 50. But what if you’re a bit closer to retirement and need to escalate your plan?

One simple tweak is to expand your real estate purchase funding options. Rather than restrict your loans to just four at any given time (one of which is likely your primary residence), look to Level 4 Funding for greater flexibility and a longer runway in your financial plan.

You may run across a stellar investment property, hopefully one which cash flows for well above $400 per month. And you may have to act swiftly to win the bid. Your local bank will likely bog you down in a sea of paperwork and lengthy approval processes. Plus they are sure to have some sort of maximum property funding limit.

Keep things simple and follow Dr. Tran’s lead. When it comes to real estate financing he recommends Level 4 Funding. Just “go there and try them” he says, and experience their professional swift, service for yourself.

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Happy senior business man making his notes at workDennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender

Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

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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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

What is a Texas hard money loan?

If you’re wanting into private financing however you’re confused about what Texas hard money means then you might have come to the fitting place. You may say that the best option to clarify what a hard money lender Texas or a private money lender Texas is can be that they’re each individuals who have entry to money that’s simpler to get to than making use of for a financial institution loan. Their money is then used nearly completely for actual property. Nevertheless, hard money lender Texas is often a group of individuals whereas private money lender Texas is only one individual. Texas hard money could be a nice possibility for somebody who does not need a financial institution loan as a result of often, you don’t have the loan lengthy sufficient for the excessive curiosity to make a very large influence. Hard money Texas is nearly all the time a short-term loan.
There are  three primary explanation why Texas hard money is termed Texas hard money and none of them should cope with difficultly in acquiring the loan as a result of in truth, an Texas hard money loan is not tough to acquire. As a substitute, it’s known as Texas hard money for these causes:
  1. Increased rates of interest, however you might have a quick turnaround time.
  2. Texas hard money lenders decide what a property is value in its greatest situation, however beneath some circumstances, will finance as much as 100 %.
  3. Hard money lender Texas offers money primarily based on the worth of the property however embody restore prices into the loan. This is very not like most conventional lenders who don’t embody the restore prices into the loan. Take into account this is a nice possibility for many who are planning on rehabbing the property.
Consider all of those nice advantages as you take into account Texas hard money in your subsequent rehab challenge.
Dennis Dahlberg
Dealer/RI/CEO/MLO
Degree four Funding LLC
Tel:  (512)-516-1177 Austin Texas | Fax: (888) 279-6917

www.level4funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
111 Congress Ave Suite 400
Austin TX 78701