Texas Hard Money Lender: How to Stick To Your Reno Budget with Texas Hard Money Loans

How to Keep your budget when flipping homes with Texas hard money

Budgets can balloon quickly on fixer-uppers. If you decide to invest in one, you need a high tolerance for risk, an exit strategy, and an Texas Hard Money loan to help you cover costs. This is the consensus from most home remodeling experts; You can make more money on a really cheap house that you turn into a nice house than a nice house that you turn into a premium house. All those expensive upgrades don’t offer nearly as much return on your investment as fixing a cracked foundation does. For most people, this means hiring workers, or having a lot of help. The more people you get involved, the more coordination is required. You’ll have to keep very close tabs on plumbers, electricians and handymen — or hire a general contractor (which means a big increase in your budget). Think local. If you’re remodeling a house in Massachusetts, use clapboard, not adobe bricks. The closer to home you stick for materials, the more experts you’ll be able to find to help you install them. Don’t overestimate your work. Sure, that paint job looks nice, but is it really worth a $20,000 markup on the property?

OVERPRICING YOUR PROPERTY COULD JUST LEAVE YOU WITH A HOUSE THAT PEOPLE ARE WARY OF BECAUSE IT’S BEEN ON THE MARKET TOO LONG AND WITH A TEXAS HARD MONEY LOAN IT IS KEY TO SELL THE PROPERTY QUICKLY SINCE YOU DON’T WANT TO PAY THE INTEREST ON YOUR HIGH INTEREST LOAN.

Don’t get ahead of yourself. First-time flippers may see dollar signs when they think about buying multiple properties, but problems can quickly turn into bankruptcy if you’re using one house’s equity to pay for another’s repairs. Plus, each home requires attention, and unless you’re quitting your day job — which the experts also don’t recommend for newbies — you will probably have plenty to do for one house without thinking about your next flip. However long you think the renovation will take and whatever you estimate it will cost, just understand that it will probably be much costlier and more time-consuming. Nearly every upgrade you skimp on will haunt you, re-modelers warn. From cheap carpet to cheap electricians, quality of workmanship is something that flippers cannot fake in a softening market.

If you do your research and choose your Texas hard money lender wisely, a fix and flip property can be your ticket into real estate investing. Although there are ups and downs in the real estate market, it is has historically been a sound investment and a great way to build your wealth.