It can be difficult to obtain that first loan without a track record. Lenders want to see your history as a fix-and-flipper, renovator, or builder. They want to know you understand budgets, time constraints, and have the contacts to overcome the obstacles that are bound to arise. Though some Texas Hard Money Lenders have these same stringent requirements, most Texas private lenders are more apt to take on the new kid on the block and help him, much as a mentor would, through that first project.
Credit scores and lack of credit worthiness can halt the lending process. As with most ventures in life, it takes a few attempts before we get it right and a few more before we excel. In the meantime, our credit can take a hit and we can be left with little in the bank to lean on. Fortunately, Texas private lenders look at your assets and the equity you have in your property. They will determine a loan-to-value ratio and lend accordingly. First-time investors have a much better chance at getting a “yes” when the main focus is on the property.
The fix-and-flip investment model has skyrocketed. In fact, house flipping hit a six-year high in 2018. This means that investment properties are quickly snatched up once they hit the market and contingency sales are few and far between. You’ll need cash, quick. Texas Hard Money Loans can be closed in anywhere from one to two weeks, with some Texas Hard Money Lenders closing in as little as a few days. This does mean that the days when vacant properties and foreclosures were easily found has pretty much ceased to exist. In addition, due to supply and demand, housing prices have risen steadily. For those of you newbies out there, keep in mind that real estate auctions are still good places to explore.
The average gross profit of a flipped house in the first quarter of 2018 was over $66,000 dollars. Not bad for a few month’s work. This led to an average 47.8 percent return on investment. Despite what may well be a very lucrative endeavor, it’s important to know your market. Areas where prices are rising fast can carry more risk. Emerging markets, on the other hand, are a fix-and-flipper’s dream. The ultimate goal is to find inexpensive properties in good locations that will lead to high ROI. Many real estate investors are finding their pot-of-gold by turning to the suburbs and renovating in the up-and-coming neighborhoods. Don’t be tempted in going for that cheaper property in a low-income neighborhood where you may have problems reselling.
At Level 4 Funding, our portfolio of Texas Hard Money Lenders contains hundreds of investors that lend to first time flippers and renovators.
While it may seem almost impossible to get into your first property, know that there are opportunities out there. Call us at Level 4 Funding for a no-obligation quote. We may just have the perfect lender to get you started in the very lucrative real estate investment model.
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.