The stars of HGTV and the dazzling production quality of their shows may make it seem like any one can fix and flip a home and make a profit—but what kind of steps would an ordinary person take without the razzle dazzle of the cameras and production crew?
Chip and Joanna Gaines. The Property Brothers. Christina and Tarek El Moussa. All of these partners have worked their way to success flipping and fixing homes. Not all homes reap profit, but if the vast majority didn’t, there wouldn’t be a show.
So what do you do if you don’t have a mass amount of wealth from your successful show that would otherwise allow you to purchase and bid on competitive properties?
When an ordinary person doesn’t qualify for a loan from a traditional lender, like a bank or a credit union, they are usually referred to an untraditional, alternative money lender. What most people don’t know is that untraditional lenders that offer hard money are often the best options for those who need Texas fix and flip loans. Texas hard money lenders offer cash fast, so it is ideal for someone looking to grab a property off a competitive market. Additionally, they have a short repayment period, which works well for someone who wants to make a quick profit off a fixer upper, rather than a profit off a long term rental property.
While hard money is a great option for someone looking to fix and flip, there are some important things to consider. The short repayment period does lend itself to the fix and flip process, however, coupled with the high interest rates of private lenders, it may not be the most realistic option for everyone. Still, reliable private lenders offer something else: a transparent relationship. Because they offer flexibility and therefore a more individualized relationship with their buyers, there is the possibility of adding a short extension to the repayment period. If hard money isn’t the right option for you, other loan options are available.
Depending on the needs of the property, you may be able to obtain a loan from a bank or utilize crowdfunding sources. Personal loans can be combined with other loan types, and may be used in combination with the loan from a friend or family who wish to invest in you and your property.
Whatever you choose to do, obtaining Texas fix and flip loans is not impossible. It may not be as glamourous or as easy as the TV suggests, but there are a variety of resources that can often be used in tandem with one another—and if you’re feeling unsure, it’s always possible to invest in a real estate attorney to help analyze your options or loan agreements, so you feel confident that you are making the decision that is best for you.
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.