Tag Archives: Hard Money Lender Texas

How to Qualify for a Commercial Real Estate Loan

March 27, 2018Uncategorizedcalifornia hard money lenders, california hard money loan, hard money lender, Hard Money Lender Texas, Hard money Texas, Texas Hard Moneybigdaddydennis

With all the varying requirements, it can be confusing understanding what one needs to do and expect when trying to qualify for a commercial real estate loan. Here’s a few of the basic documents and experience you need when applying for a loan.

No matter which type of lender you are working with, most will prefer that the borrower focus on a property when assessing a loan. This information should include the address and location, purchase price, intended use of structure, amount and scope of work, timeline for rehab, contractor bids and projected after-repair-value (ARV). The more information you can bring to the table, the better, such as drawings and environmental analysis.

The financial information regarding the project includes the rent roll or schedule of leases which basically amounts to the amount of income that can be expected from the property. If the property is under construction, a lender will want to see the general health of the particular market including the area’s vacancy rates and your plan for obtaining tenants. Having pre-leasing in place can be a big checkmark on the “yes” side when trying to obtain a commercial real estate loan.

They will also want to know what type of experience you have and any past investment projects in this specific segment of real estate. Some lenders will check the borrower’s qualifications such as credit history and bank statements. They will want to know your financial situation. Do you have other projects currently in the pipeline? If so, just how much debt are you currently faced with? If you have partners, the lender will want information on them as well. This will be their go-to in case of default.

Pro Forma

Other lenders require a pro forma for a commercial real estate loan. This includes the net operating income (NOI). Also known as EBIT or Earnings Before Interest and Taxes, it is, just that, and helps lenders understand what kind of cash flow you’ll be expecting. It equals all revenue from the property minus all operating expenses. The debt-service-coverage ratio (DSCR) is also part of this documentation and is calculated by dividing the Net Operating Income by the Annual Debt Obligation. The internal rate of return and cap rate are the final pieces of the pro forma puzzle. The internal rate of return is the rate of growth a project is expected to generate while the cap rate is the ratio of Net Operating Income to property asset value.

Conventional commercial real estate loans from banks and credit unions must adhere to strict rules and guidelines when it comes to financing an investment. For this reason, they are often more difficult to obtain loans from than one provided by a private hard money lender.

Traditional lenders will need to check your credit score as well as your creditworthiness. Hard money lenders, on the other hand, do not require income verification or credit references. These short-term loans usually fall into the one to three-year mark, though some will issue loans up to 5 years and allow extensions. Some lenders assess a prepayment penalty, usually 1 to 3 percent, while others do not—Important considerations when funding your project. It is much easier to qualify and faster to obtain funding for hard money real estate loans making them the loan of choice for many investors.

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.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

The Requirements for Securing Commercial Real Estate Loans

March 22, 2018Uncategorizedhard money lender, Hard Money Lender Texas, Hard money Texas, Texas Hard Money, Texas hard money lenderbigdaddydennis

Due to the dollar amount of most commercial real estate loans, the criteria to qualify is more stringent. It’s important to understand these requirements before you apply for a loan.

Not only are commercial real estate loans substantially larger than most other loans, they are also inherently more risky. This increased risk is due to the fact that most businesses financial health is very closely tied to the overall economy unlike the financial health of a consumer which is more insulated. To offset this risk as much as possible, lenders are much stricter about the qualifications for commercial real estate loans.

The first step in securing a commercial mortgage is to have the property appraised. Legally, the lender will need to have this process completed but it is not a bad idea for the borrower to also have an appraisal completed. It is critical that the property value be equal to or exceed the amount of the loan being requested. This is simply because the property will be the collateral for the loan. Most lenders want to see the property value at least 20% greater than the loan amount to ensure that the collateral is always greater than the outstanding balance of the loan.

When a business entity is making the purchase, the lender is going to want to verify that the business is financially stable and has the ability to make the loan payments. The lender will request documentation to verify the cash flow of the business as well as the debt that the business is carrying. Lenders prefer to see a steady net income 20% greater than the debt. It is also important that the business have some type of savings or other assets which are very liquid in the event that the business slows and cannot make the loan payments from the months’ income.

If the business entity does not have a strong credit history or is relatively new, the lender will require the owner of the business or owners to become personal guarantors. This basically means that the business credit history does not merit the loan and the owners are willing to use their personal credit history and scores to obtain the loan. This also means that the owners are willing to use their own personal funds and property as collateral for the loan.

Understand What Lenders are requiring

In many cases there are nonrefundable fees which must be paid to apply for commercial real estate loans. Knowing that your business or your personal credit is strong enough to secure a loan is very important before you begin the long process of a loan application and pay the fees to have the application processed. If you have any questions about the qualifications, you should invest your time in more research.

Due Diligence

There is a lot to understand when seeking a commercial loan and researching the process, the potential lenders and the criteria for securing a loan is a very smart choice. Speaking to a local bank or a mortgage lender is a good way to gather information and learn about the process to help you avoid wasting both time and money if you are not prepared to meet the loan application qualifications.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Understanding the Logic behind the Process of Commercial Real Estate Loans

March 21, 2018UncategorizedCalifornia Hard Money lender, california hard money lenders, california hard money loan, hard money lender, Hard Money Lender Texas, Hard money Texasbigdaddydennis

Getting approved for your first commercial mortgage can be a challenge. The best way to ensure a successful loan application is to have a good knowledge of commercial real estate loans.

There is a lot more to obtaining commercial real estate loans than you might first think. The process is more complicated and lengthy than even the most difficult residential home purchase. But because of the significant amount of money involved and the added risks, lenders are much more selective when it comes to approving an application.

Technically, commercial real estate loans are secured by liens on the property which is being purchased. That property is the lenders security and ability to recover their money if you default on the loan. But there are additional factors which make commercial real estate loans much more risky than a residential loan. First, commercial real estate values can fluctuate very rapidly. This can leave a lender repossessing a property which is worth far less than the remaining balance on the loan. In addition, the business which is purchasing the property has a greater chance than a consumer of suffering financial hardship as a result of a sudden change in the economy.

Because of the increased risk that the lender is facing, interest rates are higher and loan terms are shorter on a commercial loan than they would be on a consumer loan. Most commercial loans are for a ten year period or less as opposed to a residential mortgage which can range from 15 years to 40 years in some cases. And even with these shorter terms the interest rate for a commercial loan is about 1% higher. Commercial lenders also require a 20% down payment in most cases. This gives the added security that the property will always remain greater in value than the amount of the outstanding balance of the loan.

The Application Process

When applying for a home mortgage, borrowers must be able to demonstrate that they have the ability to afford the monthly payments and that they have steady income. Commercial borrowers much also prove that there is a means of making the loan payments. But because a business is more reliant on the overall economy, they must show that the business is in good financial health, that it is being managed well and that it has sufficient cash reserves to weather a financial down turn or hardship. In some cases, the owners must also include their personal financial documentation if the business has poor credit, no credit or has not been in operating for more than 5 years.

Understanding the Lending Process

All lenders are in business to make money. Understanding that fact makes it easier to understand why commercial lending can be difficult to secure. The increased risk that the lender faces needs to be rewarded with higher interest and shorter repayment terms. In addition, the lenders are more careful about the creditworthiness and the financial health of the borrowers. With the economy having a bigger impact on businesses, lenders want to verify that a business is stable enough to survive a short economic crunch or down turn in business. Know this information and creating a loan application package that demonstrates your financial stability will greatly increase your opportunities for commercial financing.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Criteria for Selecting Commercial Lenders

March 21, 2018Uncategorizedcal, california hard money, Hard Money Lender Texas, Hard money Texas, Texas Hard Moneybigdaddydennis

Evaluating commercial lenders can be a difficult task. But preparing a list of criteria to use for selecting the best lender to meet your needs can be a great time saver.

As a business professional, both your time and your money hold a great deal of value. So it is important to find a lender who will meet all of your needs. Ideally, you will be able to evaluate enough commercial lenders to select a few to forge long term relationships with to ensure continued financial prosperity. The process will undoubtedly take some time but the long term benefit will be a good working relationship with a primary lender as well as other secondary reputable lenders.

Commercial lenders are all about money. You would not be seeking a commercial lender if you did not need money. But you should look at these relationships as you would any other vendor who is supplying a good or service to your business. You need to compare the merits or the service each lender is willing to provide to you. This means what type of fee structure are they offering, what is the interest rate and how quickly can they deliver on their product; your loan funding.

You will also want to evaluate the core qualities of the lenders existing clients. Do they cater to a certain industry or type of loan? Do they have a specific loan size that they tend to service? Are they familiar with your business and the type of loan that you are looking for? All of this information will help you to determine the level of responsiveness and the quality of the service that you will receive if you do business with the lender. Customer service might not jump out as an important factor when securing the loan but if you ever have an issue or want to restructure your loan, then customer service could be one of the most important features the lender offers. Think long term for customer service and product lines available. Meeting your long term needs with a single lender will save you a great deal of time in the long run.

Comfort and Compatibility

Think of your lender as a strategic partner. You will need to discuss confidential financial information as well as other proprietary information about your business. It is important that you are working with a lender with whom you have a certain comfort level. The more honest and up front you can be with your lender the more benefits they can provide to you.

Invest Time to Evaluate for Long Term Success

Creating a list of criteria to evaluate commercial lenders will require an investment of your time today. But the benefits will continue to reward you each time you complete a new loan from your lender or seek advice. Carefully consider the fees and interest rates associated with the different lenders, but also recognize the added value that customer service and fast response time can add to your relationship. Knowing that you have a lender who will meet all of your needs for the long term is worth the time involved in a careful selection process.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Benefits of Non-Recourse Commercial Loans

March 19, 2018Uncategorizedcalifornia hard money lenders, california private hard money, fix and flip, hard money lender, Hard Money Lender Texas, Hard Money Lenders Texas, hard money loans Texasbigdaddydennis

There are many options to explore when seeking commercial loans. One of the factors which can reduce personal liability and risk of assets is a non-recourse loan.

As you begin to explore the options for commercial loans you will quickly find that there are two main categories for these loans, recourse and non-recourse. The more common of the two is the recourse loan which requires the borrower or borrowers to personally sign as the guarantor of the loan. This simply means that in the event of business failure or inability of the business to make the loan payments for any reason, then the guarantor is personally responsible to make the payments. Obviously, this presents a significant personal financial risk to the guarantor.

Non-recourse commercial loans do not require the borrowers to become personal guarantors of the loan. Therefore, these loans do not require the risk of the personal assets of the borrowers. This is one of the biggest advantages for any borrower. Knowing that a business failure means the loss of income is bad enough but to also be faced with the responsibility of personal liability on a commercial loan can be devastating. No business owner ever chooses to take out a loan which they believe the business will default on but there is always that rare possibility, and the added stress of personal liability. But a non-recourse loan eliminates that stress and potential issue.

An additional benefit is that non-recourse loans are assumable. This can be a huge advantage if you plan to sell the property in a few years or if a situation changes and you need to sell the property quickly. Currently, commercial lending rates are very favorable, but they are expected to increase. So the current loan rate is likely to be much lower than a rate which will be offered on a loan in a few years. So when you do decide to sell the property, you have the ability to offer to have the buyer assume your loan. This will be a great incentive for the buyers as the interest rate could be significantly lower than the current rate.

The Perfect Non-Recourse Loan Candidate

Non-recourse loans are most often used to purchase properties which provide a strong cash flow as the property is the only collateral. This means that even if the property is not the more visually appealing or if it needs a face lift, it could still be a candidate for a non-recourse loan. The critical factor is the cash flow. As long as the property is generating 1.25 times the proposed payment of the loan then lenders will be eager to offer this financing solution.

Great Benefits if the Fit is Right

Non-recourse commercial loans can offer a huge benefit for the right borrower and the right commercial property. Knowing that the property does generate a strong and steady cash flow allows the borrower to get a great loan and rate without having to personally guarantee the loan in the event of a business failure. It also provides added benefits to the borrower when it is time to sell the building by allowing the buyer to take advantage of a lower interest rate on the assumed loan.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

7 tips to be successful for your first or next fix & flip.

March 28, 2017Uncategorizedfix and flip, Hard Money Lender Texasbigdaddydennis

There are alot of people getting into the fix and flip business. Here are some tips that I’ve discoverd when I’ve talked to flippers over the past decade.

1. Know Your Area – There are all sorts of things a fix and flipper should know about the area he is flipping. The prices of similar homes that have recently sold in the area are only part of the equation. You have to know the schools, the traffic, if the neighborhood is expecting any major changes, and other details that make it attractive to buyers.

2. Know The Market – The fix & flip market is ever-changing, and even neighborhoods and subdivisions follow their own trends. You have to be able to make accurate predictions on what the property will be worth once the renovations are complete. Are there other rehabs to compare to?

3. Over Estimate? Whether you’re taking out a hard money loan or saving up your own cash, you must set aside funds for unexpected expenses. Sometimes necessary repairs don’t become apparent until the renovation is underway, and other times they can prove to be far more costly than the budget allows for. Overestimate or have a reserve account built into your budget.

4. Understand Holding Time – When you fix & flip real estate, having a solid timeline in mind is essential. Knowing how long you have to complete a project, and keeping everything on schedule, can make a huge difference in the amount of profit you see. Also factor in the amount of time to sell the home once completed.

5. Be Aware of the Industry – From bidding, through buying, renovating, and selling, you’ll need to be in contact with numerous professionals. Create relationships you can count on, hard money lender Texas finding the cheapest does not always make you the most money. Fix and flip projects are about reliable timely resources and professionals that follow through.

6. Finding Pros- While some start-ups do all the renovations independently, there are numerous professionals you may need to call on at some point to get an expert job done fast. Electricians, plumbers, contractors, painters, hard money lenders Texas and other helpers are beneficial, but you’ll need to establish relationships with trustworthy people before you begin.

7. Get Educated – Most Successful flippers have one thing in common – They are Licensed Real Estate Agents.

Technorati Tags: fix and flip,hard money lenders texas

Top 6 Reasons To Have a Hard Money Lender

March 28, 2017Uncategorizedhard money lender in arizona, hard money lender in california, Hard Money Lender Texasbigdaddydennis

Sometimes it can be very hard to find a trustworthy and reliable financing option, especially when you trying to purchase or refinance investment property. Despite the availability of the traditional sources of financing via banks, venture capitalists, among others, it might still not work in your favor. Most of these traditional lending institutions tend to take a long time to approve the loan and usually require you to undergo a very stringent evaluation process. They also take lots of factors into consideration, such as your credit score, and your repayment capacity which leaves for a very little chance for loan approval. On the other hand, hard money lenders don’t rely entirely on such factors.

Unlike the traditional lending institutions, hard money lenders basically offer investors the opportunity of borrowing short term loans; usually anywhere between 6 to 60 months, depending on the situation and individual lending company.This makes a trusted hard money lender essential for any real estate investment team. Whether you are new in real estate investment, or you are a seasoned veteran, it is very important to have a trustworthy hard money lender on your team. Actually, there’s nothing more advantageous to any real estate investor, than fostering good relationships with the hard money lenders.

The best real estate investment opportunities are normally captured by the investors who are well prepared. The best deals usually present themselves sporadically, and most times, there are usually many other interested parties. As a real estate investor, you need to move swiftly, and you can do this by obtaining short term financing from a hard money lender. That being said, lets now take a look at some of the other reasons why it is great to have a hard money lender you can trust.

6 Reasons Why It’s Great To Have a Hard Money Lender You Can Trust

Faster Approval

As aforementioned, most real estate deals are usually time sensitive, and using hard money lenders is the best way of ensuring that you get quick funding whenever necessary. Unlike most traditional financial institutions, applications for hard money loans involve much less paperwork. Hard money loan applications are usually only about four pages of basic information and can be approved very quickly once they have been filled and then returned to the lender. This allows real estate investors to take advantage of opportunities which might come up at any given time. A trusted and reliable hard money lender will provide you with quick assistance and help you obtain hard money loans to purchase that property or even refinance investment property.

More Versatile

One of the main reasons you should have a hard money lender on your team is their versatility. With hard money lenders, it is possible for an investor to have a lot more negotiation room of the loans terms. You can be able to tailor a repayment schedule to fit your particular needs; this gives you the chance of investing in a variety of different deals and commit to deals which you find most lucrative. This increased versatility, combined with the fast approval, allows you to take full advantage of the opportunities which would have otherwise passed you by.

No Need For Perfect Credit Scores

Hard money lenders are usually equity based lenders, meaning that they are mainly concerned with the real estate value which will secure that loan, and less concerned with the borrower’s credit scores; When it comes to obtaining loans from a commercial hard money lenders, the collateral, and the business plan is much more important than the credit scores.

Convenience

Applying for a mortgage is time-consuming. It can take many months to close on loans, which can put you at risk of losing out on that particular investment property. Fortunately, with hard money loans, it is possible to get the much-needed funding in a couple of days or weeks. This is important especially if you are funding a large scale development project, and you do not want any deviations whatsoever, from the set timeline to completion.

Less Stringent Terms

Unlike most traditional financing institutions, hard money lenders normally have their very own sets of rules and regulations which make it easy and quick to approve the hard money loans for the borrowers. In addition, the hard money lenders are much more open-ended in nature, which means you can talk to them and discuss the terms which will best fit your particular needs. This can include varying the loan amount based on the investment property or the renovations which the property needs.

No Prepayment Penalties

Well, in life even the best-laid plans are subject to change. If your deal happens to go well, the very last thing you want is getting penalized for the success. Unfortunately, most traditional financial institutions usually tend to charge hefty prepayment penalties when circumstances change, and the loan is partially or fully repaid before the set date. Hard money lenders are always fully invested in your success, and they typically structure the loans without any prepayment penalties. This is another great reason to have a trusted hard money lender on your team.

Technorati Tags: commercial loans,commercial real estate loans

How to Flip a House: Take the Advice of Hard Money Lenders Texas Investors Trust

January 14, 2016alternative funding option for investors, Texas hard money lendersHard Money Lender Texas, hard money lenders in texas, Texas hard money lender, Texas hard money lendersbigdaddydennis

If you would like to make money shopping for and promoting properties, the greatest means to do it’s to buy and repair up properties that want a little TLC. Nevertheless, you want to remember a few suggestions from hard money lenders, Texas buyers, and different monetary professionals to be sure that you select a profitable challenge that helps you earn a revenue.

For those who activate HGTV, exhibits like “Flip or Flop,” and different residence flipping exhibits make it seem that anybody with a mind and a massive hammer can buy, renovate, and promote a residence for a revenue. Nevertheless, whenever you speak to the specialists like hard money lenders, Texas realtors, and different actual property buyers, it turns into obvious that there’s extra to making money on a repair and flip than these exhibits lead you to consider.

Whereas a repair and flip property could be a nice alternative to make money, hard money lenders, Texas actual property brokers, and fellow flippers need you to know the ins and outs of the repair and flip commerce so you’ll be able to maximize your revenue and decrease your losses. Listed here are three tried and true suggestions to show you how to make money by rehabbing and promoting a property.

1. Location, location, location. In accordance to hard money lenders, Texas actual property specialists, and different monetary professionals, the location of your repair and flip can’t be burdened sufficient. most different points could be mounted, however not the location. Select a fascinating space and your private home will just about promote itself.

2. Do not over-improve. Just be sure you understand that you do not even have to dwell in the property so you can also make some compromises. Going with the costliest upgrades normally means you’ll find yourself dropping money.

three. Attempt to re-purpose fairly than substitute. For those who can stain or paint the present cupboards or transfer that hideous kitchen island to one other location to turn into a in-built desk, you’ll save money. The extra you save, the smaller your probability of dropping money.

After you have selected a repair and flip, it’s time to select a hard money lender, Texas realtor, and different actual property specialists to buy the residence

A hard money lenders, Texas realtor, appraiser, and residential inspector can work with you to be sure to get financing for a property and that it’s a good worth. You may also save time and finally money by ensuring you do not overpay and that no hidden surprises come up throughout your renovation.

Name our workplace at Degree four Funding at present to get began in your hard money loan to your Texas repair and flip property. Our specialists can assist you get the money you want, at present!

Dennis Dahlberg Dealer/RI/CEO/MLO

Degree four Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
dennis@level4funding.com

www.Level4Funding.com

111 Congress Ave |Austin | Texas | 78701

About the writer: Dennis has been working in the actual property business in some capability for the final 40 years. He bought his first property when he was simply 18 years outdated. He rapidly discovered about the superb funding alternatives supplied by trust deed investing and hard money loans. His want to assist others make money in actual property investing led him to concentrate on various funding for actual property buyers who might have bother getting a conventional financial institution loan. Dennis is captivated with various funding sources and sharing his data with others to assist make their desires come true.

Dennis has been married to his fantastic spouse for 38 years. They’ve 2 lovely daughters four superb grandchildren. Dennis has been an Arizona resident for the previous 32 years.

6 Benefits of Investing in Real Estate Using Hard Money Lenders in Texas

December 22, 2015Uncategorizedhard money lender in Texas, Hard Money Lender Texas, Hard Money Lenders Texasbigdaddydennis

6 Benefits of Investing in Real Estate Using Hard Money Lenders in Texas

Real estate investing is one of the most popular methods, and getting started by using funds obtained from hard money lenders in Texas makes it easier to start generating cash. Although there are many benefits to going with real estate, we’ve narrowed it down to the top six here.

1. The real estate market is fairly predictable. Unlike stocks and bonds, it’s much easier to determine what the return on investment will be well ahead of time.

2. Cash investments rise with inflation when they’re put into real estate. If you’re planning to rent the home, the monthly rental fee can easily be increased to keep up with inflation, so you’re never missing out on profit.

3. Real estate investments tend to hold steady in the long-run. Especially when the economy is unsteady, and investors are worried about stocks and bonds failing to provide adequate returns, the finance-savvy turn to real estate.

4. Because real estate investments are steady, their equity can provide opportunities for future investment opportunities. This is why hard money lenders in Texas generally base their decision on the value of a property, and weigh it more than other factors. Once the property has equity, it can be used to procure more properties, or be shifted to other investment vehicles. Because mortgages tend to be more easily accessible than other types of loans, like personal or business loans, the cash can often be unlocked later. Moreover, the interest on a mortgage is tax-deductible, making it a financially-smart choice as long as the risk is worth the gain.

5. Aside from the obvious cash flow that comes from renting a property out, fix and flips can provide solid instant returns as well.

6. Even if you opt not to sell it or rent it out, you can still use the property for your own needs, and it will generally continue to increase in value.

Know How to Evaluate the Market Before Contacting Hard Money Lenders in Texas

As with any type of investment, it’s important to have a keen understanding of what’s happening in the market before procuring a loan from hard money lender in Texas. You’ll need to be sure that the market is currently behaving as it traditionally does, and evaluate the trends. Even small fluctuations can indicate that it’s smart to hold off on buying if prices are dropping a bit, or to sell if they appear to be peaking.

The more information you have about packages offered by hard money lenders in Texas, as well as the industry and market, the less risk is involved in real estate investments.

All investments carry some amount of risk, through real estate tends to fall into the low-risk category. The amount of risk can be further reduced by becoming familiar with all the packages hard money lenders in Texas offer, and by learning as much as you can about the real estate market before you begin.

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
dennis@level4funding.com
www.Level4Funding.com

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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

How to Make Money with Texas Hard Money Lenders: Buying and Holding vs Flipping

December 22, 2015UncategorizedHard Money Lender Texas, Texas Hard Money, Texas hard money lender, Texas hard money lendersbigdaddydennis

How to Make Money with Texas Hard Money Lenders: Buying and Holding vs Flipping

There are two main strategies that people use when investing in real estate- buying and holding or fixing and flipping. Here’s a quick guide to help you choose which method is right for you if you’re working with financing from Texas hard money lenders.

Seasoned pros have had time to hone in their skills and know which investments work, but newcomers often stumble in the beginning, and that can become costly. Texas hard money lender provide short-term loans with very light restrictions, which makes it easy for just about anyone to get into real estate investing, but choosing the right strategy is essential.

Buying and holding a property is usually part of a long-term strategy. People who use this method are familiar with the housing market, and they buy homes at a low price with the intent to hold onto them until they increase in value. They may purchase a property that needs renovations, or a home that’s ready to be lived in right away. While they wait for the value of the home to increase, they’ll often rent it out to others or live in it themselves.

Fixing and flipping is usually a short-term income strategy. People buy homes in need of repairs, often using funds from Texas hard money lenders, and then they sell the homes right away for immediate profit. In order to be considered a fix and flip, the property is generally bought and sold again in less than a year.

There are Benefits to Both Holding and Flipping using Funds from Texas Hard Money Lenders

While both types of investments can begin with funds obtained from hard money lenders Texas, people who hold their properties generally switch to another type of loan once the renovations are complete, and they’re ready to move someone into the home. When the investor truly knows the market, both holding and flipping properties can be profitable. However, the flipper is concerned with short-term gains, and the holder will have money tied up in the property for years, if not decades.

Many successful flippers take advantage of Texas hard money lenders for flips, and diversify with held properties as well.

At some point, even the most skilled house flipper maxes out how much he can accomplish on his own. Despite utilizing a team of professionals, there’s a limit to how many houses a single person can oversee rehabs on at once. When experienced flippers hit this point, they often decide to diversify, and keep some money invested in properties they’ve already worked on. Of course, it’s always smart to diversify assets, so it’s not necessary to wait until you’re flipping 20 or 30 houses before you start holding onto some. Both are sound investment strategies, though it’s important to know what trends are occurring in the housing market, to ensure that a long-term hold property will continue to increase in value, and that a short-term flip can be sold quickly at a good price as soon as you finish with it.

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
dennis@level4funding.com
www.Level4Funding.com

111 Congress Ave |Austin | Texas | 78701

Dennis has been married to his wonderful wife for 39 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

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Tag Archives: Hard Money Lender Texas

How to Qualify for a Commercial Real Estate Loan

With all the varying requirements, it can be confusing understanding what one needs to do and expect when trying to qualify for a commercial real estate loan. Here’s a few of the basic documents and experience you need when applying for a loan.

The Requirements for Securing Commercial Real Estate Loans

Due to the dollar amount of most commercial real estate loans, the criteria to qualify is more stringent. It’s important to understand these requirements before you apply for a loan.

Understand What Lenders are requiring

Due Diligence

Understanding the Logic behind the Process of Commercial Real Estate Loans

Getting approved for your first commercial mortgage can be a challenge. The best way to ensure a successful loan application is to have a good knowledge of commercial real estate loans.

The Application Process

Understanding the Lending Process

Criteria for Selecting Commercial Lenders

Evaluating commercial lenders can be a difficult task. But preparing a list of criteria to use for selecting the best lender to meet your needs can be a great time saver.

Comfort and Compatibility

Invest Time to Evaluate for Long Term Success

Benefits of Non-Recourse Commercial Loans

There are many options to explore when seeking commercial loans. One of the factors which can reduce personal liability and risk of assets is a non-recourse loan.

The Perfect Non-Recourse Loan Candidate

Great Benefits if the Fit is Right

7 tips to be successful for your first or next fix & flip.

Top 6 Reasons To Have a Hard Money Lender

6 Reasons Why It’s Great To Have a Hard Money Lender You Can Trust

How to Flip a House: Take the Advice of Hard Money Lenders Texas Investors Trust

After you have selected a repair and flip, it’s time to select a hard money lender, Texas realtor, and different actual property specialists to buy the residence

6 Benefits of Investing in Real Estate Using Hard Money Lenders in Texas

6 Benefits of Investing in Real Estate Using Hard Money Lenders in Texas

Know How to Evaluate the Market Before Contacting Hard Money Lenders in Texas

The more information you have about packages offered by hard money lenders in Texas, as well as the industry and market, the less risk is involved in real estate investments.

How to Make Money with Texas Hard Money Lenders: Buying and Holding vs Flipping

How to Make Money with Texas Hard Money Lenders: Buying and Holding vs Flipping

There are Benefits to Both Holding and Flipping using Funds from Texas Hard Money Lenders

Many successful flippers take advantage of Texas hard money lenders for flips, and diversify with held properties as well.