Eager to Move? Using Hard Money Lenders, Texas Homeowners Can Buy Before Selling

There are many reasons why a homeowner might want to move before his house is sold, but it’s difficult to do when the funds are tied up in a property. With help from hard money lenders, Texas homeowners can receive what’s known as a “bridge loan,” so they can move when it’s best for them.

For most people, their home is the single biggest investment they will make in their lifetime. Although they may trade it out a few times over the years, the majority of their income is poured into the property. That money gets locked down tight, and banks aren’t keen on releasing any of it back to the homeowner.

However, we also live in a world where moving for the sake of employment is often necessary. There are a myriad of other issues that might come up, forcing a family to have to pick up stakes and move quickly and unexpectedly as well. Unfortunately, with the money tied up in a house, homeowners are stuck.

Occasionally, a home equity line of credit can be issued. This is where the bank will give you some of the money you’ve paid, so you can use it on whatever you need to. However, this option is routinely stripped away once the bank finds out that your house is on the market. Using hard money lenders, Texas homeowners can have access to the equity in their home, even if they plan to move right away.

Working with the Best Hard Money Lenders, Texas Bridge Loans Can Be Right for You

The concept is called a “bridge loan,” simply because it’s designed to be short-term, to help bridge the gap between your move to a new home, and the time your old home is sold. The short span isn’t generally a problem though, because most homeowners only need a couple of months to get their old home sold. With help from hard money lenders, Texas homeowners can obtain a bridge loan, and use it to cover the down payment on their new home. The loan is generally based on the equity you have in your existing home, so even people with poor credit or other issues can qualify for this valuable service. So, not only are they easy to obtain, but they’re perfectly designed to fill the gap and make your housing transition incredibly simple.

When working with hard money lenders, Texas borrowers have access to expert advice.

Traditional wisdom says that you should always sell your home before you purchase a new one, but in the real world, that isn’t always possible or practical. Using bridge loans from hard money lenders, Texas homeowners have another tool in their arsenal when trying to navigate the changes of life. Additionally, the people who provide them are experts in the industry, and are familiar with numerous types of financing options, so you can get all the information you need to be sure that you’re choosing the best option for you.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

  

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.

The Real Deal: Why Origination Points Matter when Working With Texas Hard Money Lender

Origination points exist in all sorts of loan transactions, but many people are unfamiliar with what they are or what they mean. In short, when you’re working with Texas hard money lenders, or any other lender, origination points make a difference in how much you’ll have to pay.

One of the things that gets tossed around when people start discussing the terms of their mortgages or loans from Texas hard money lenders is the number of origination points that comes with the loan. In short, origination points are the fees associated with getting the ball rolling to fund the loan. Each origination point is usually worth one-percent of the loan value, and it’s money that you will have to pay for receiving the originators’ services.

Depending on what type of loan you’re getting, and where you’re getting it from, the formula used to calculate the origination points will vary. Some companies consider how much legwork has to be done in order to get your loan approved. If you have one person running credit checks, background checks, scheduling home evaluations and such, that time can seriously add up, and it may manifest itself as origination points.

Other agencies assign origination points based on the risk associated with loaning to an individual. The more-likely someone is to default, the higher the number of points will be. This makes sense from a work standpoint as well, because lenders who routinely help high-risk clients will often run extra checks to mitigate some of their concerns.

How Many Points Should I Expect to Pay Texas Hard Money Lenders?

Texas hard money lenders base their decision to loan money out mostly on the value of the property. In other words, if you’re not looking for much money, and the property has a high value, it’s pretty much a done deal. This means that the number of origination points can be really low, but it generally doesn’t dip below three, no matter who you work with. On the other hand, it’s not uncommon to see as many as six origination points, and some agencies will actually go as high as eight.

You should know how to evaluate offers from Texas hard money lenders, so you know what to expect.

Obviously, no two Texas hard money lenders are going to handle business exactly the same. It’s important to know how many origination points are on the loan, and, for your sake, see fewer of them on the paperwork. However, they aren’t the end-all. You’ll also need to consider your interest rate, and any other fees an agency might add to the total, as well as how easy a company is to do business with. All of these things will make a difference in how much you pay for the service overall, and will have a huge impact in how satisfied you are after the transaction. Moreover, each company may have multiple packages available, so be sure to speak to a professional if you have questions. 

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

  

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.

Is an Interest-Only Mortgage from Hard Money Lenders in Texas Right for You?

An interest-only mortgage can be a helpful tool, but it’s not ideal for every circumstance or individual. While people who flip houses routinely use them, there are numerous other situations when an interest-only loan from hard money lenders in Texas might be the best choice.

As the name suggests, an interest-only mortgage requires that only the interest be paid on it in monthly installments. Although hard money lenders in Texas may restrict this to a year or two, the loans could theoretically go on for an extended period of time. The benefit to this is that the monthly payment is incredibly low. The obvious downside is that the principle of the loan is not reduced at all. If an individual is investing in their home, they’d want to get the principle paid off as quickly as possible. However, there are times when it makes more sense to only be obligated to pay interest.

1.       If your income is unsteady. Typically, people who are self-employed make more than those who are salaried, but the money tends to come in at odd times. When the loan is an interest-only one, people with fluctuating incomes can pay the low monthly rate, and pour money into the principle whenever the funds come in.

2.       If you’re a savvy investor. Generally speaking, the cost of interest is higher than what a person can make investing, but this isn’t always true. If you have a habit of investing incredibly wisely, you may be able to pay down the principle with the windfalls, and just keep up with the interest on a monthly basis.

3.       If you’re planning to move soon. Sometimes, it’s difficult to get out from under a house in time to move into the new home you want. By working with hard money lenders in Texas, you may be able to keep up with two payments, or use equity to fund the down payment of your new home.

There are Many Benefits to Interest-Only Loans from Hard Money Lenders in Texas

Although these three instances are the most-common, there are many times when working with hard money lenders in Texas is the best option. In the situations mentioned earlier, it was more an issue of lack of income. However, when people flip houses, they often use this financing method, too, simply because they’re actively building up the value of the home. In other cases, easy approval even with poor credit is a helpful benefit. It’s really a matter of knowing how to pay off the principle before the term ends, or having a plan to transfer the balance elsewhere at the end. In the financial world, this is called an “exit strategy,” and they’re especially important when dealing with short-term loans.

When in doubt, get advice from an expert on hard money lenders in Texas

Interest-only loans serve a valuable function, but they’re not the best choice in for every circumstance. If you’re not sure if it’s the right option, reach out to an expert with your questions. Regardless of your financial situation, there’s a program that’s designed for people like you.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

  

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 Evaluate a Fix-and-Flip Before Contacting Texas Hard Money Lenders

The media has sensationalized the rehab and flip business, making it seem like it’s easy cash for anyone who jumps in. The truth is, you have to have a keen eye for investing, and know how to evaluate the home before you get started, especially when you’re using Texas hard moneylenders.

Homes that have fallen into disrepair can be a rehabbers dream. A seasoned pro can size up a home fairly quickly, and make an educated assessment as to whether it will provide a solid return on investment after all the work is complete. This evaluation is often the largest determining factor in whether someone is successful in the fix-and-flip business, so it literally pays to do the research ahead of time.

1.       Calculate what the home will be worth after repairs. To do this, you’ll need to research what comparable homes in the area have sold for over the past 90 to 120 days. They should be in a similar neighborhood, have the same number of bedrooms, bathrooms, and square footage, and also be about the same age. Target an area within ½ to ¾ of a mile from your potential rehab project.

2.       Consider what the repairs should cost. Some re-habbers swear by a $20 per square-foot rule when it comes to cosmetic renovations. However, it’s always wise to bring a contractor on board to verify your estimates before you finalize things, even if you’re going to do the work yourself.

3.       Include any contract fees and the loan costs from your Texas hard money lenders in your total expense estimates.

How to Tell if a Flip Using Texas Hard Money Lenders will Be Successful

Unfortunately, there are no guarantees when it comes to rehabbing and flipping houses. Even experts in the industry get burned from time to time, so you have to exercise diligence, and leave yourself wiggle room. The amount you offer for the home should be enough that after you pay fees, repay your Texas hard moneylenders, and cover repairs, that there’s a tidy sum left to reimburse you for your efforts. It’s wise to build a cushion in when you give your offer, though if you go too low, you could be denied. Equally, having fast access to cash may enable you to negotiate a better deal, so take that into consideration when you make an offer on a property, too.

You should only borrow from Texas hard money lenders if you’ve done the research and you’re familiar with potential rehab pitfalls.

There’s a big difference between making a calculated decision based on knowledge of the housing market, and in making repairs with the hope to turn a profit. Not every rebab is worthwhile. If you’re just starting out, choose the simplest projects, and include professional contractors in your budget. You can test your knowledge in rehabs by scouring a neighborhood, and making your own predictions of what houses will sell for once they’ve undergone renovations. You may also have better success if you find a seasoned rehabber and spend some time working as an apprentice for him. Fix-and-flips aren’t for everyone, and getting started in the industry requires real estate knowledge, as well as a solid background in home repair and estimates. Texas hard money lenders can provide the short-term cash you need to make a deal, but you’ll need to have the knowledge to ensure you’re making a wise investment. If you have these things in your own mental toolbox, fix-and-flips can be incredibly lucrative.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

  

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 Hard Money Lenders in Texas are Helping When Banks Fail

Many people, including real estate investors, often think that a property can only be purchased with money they have in the bank, or through a mortgage loan borrowed from a bank. Realistically, there are many paths to home ownership, and the easiest is often through hard money lenders in Texas.

Everybody needs a place to live, but the traditional system makes it impossible to buy a home, or even rent one, when there’s a blip in your history. Unfortunately, this is the very real situation many Americans face. The economic recession hurt almost everyone’s credit, and has left so many families without housing options, even years after the crisis.

Despite the fact that the nation is still recovering, banks look at all sorts of things, including your credit score, previous bankruptcies, and employment history. If you don’t make the cut, or they think you’re too much of a risk, they refuse to provide a mortgage. Banks will even deny you if your credit is fine, but you happen to be applying at the same time as others with higher scores.

The Urban Institute examines issues like this, and has a specific focus on social and economic policies. The group has been actively researching since the 1960s, and in 2013 they released a huge bombshell. Banks have historically claimed that they only deny about 14% of applications, but the Urban Institute leveled the playing field by eliminating those with perfect or near-perfect credit from the calculations. In doing so, they discovered that the rate of denials is triple the amount banks claim for those with less than perfect credit. Considering that only 0.5% of us may ever achieve a perfect rating, most of us fall into a bracket with a 43% denial rate, which is why hard money lenders in Texas are incredibly popular.

Hard Money Lenders in Texas Give that 43% a Successful Path to Home Ownership

Banks have many rules and restrictions on who they’ll lend to, but when you borrow from hard moneylenders in Texas, the money and the decision are handed down by one person, or a small group of people. This method of lending isn’t restricted by the same guidelines and policies, because the money that goes to fund the purchase of the home comes from sources like personal funds and retirement accounts. Instead of focusing on an individual’s history, the decision on the amount of money needed and the value of the property or assets.

Depending on eligibility, 100% of the cost of your home can be funded through hard money lenders in Texas.

Unlike conventional mortgages, which usually require a down payment, hard money lenders in Texas may be able to give you a loan for the full purchase price of the property you want. This means that it’s much easier to buy a home, and it’s significantly easier than trying to qualify with a bank. It’s worth noting that the people who loan the funds are investors, and they want you to succeed, but they’re also loaning out their personal funds, which means that it can cost a little more. For this reason, many people utilize this option to purchase a home initially, and then secure a traditional mortgage when they can qualify for one at a later date. The additional step is generally of little concern to home buyers, because it enables them to have the keys to their very own home long before it could happen by other means.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

  

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.

What You NEED to Know About FICO Scores and Hard Money Loans Texas!

Many Americans will find themselves in the position of having "bad" credit at some point in their lives. However, bad credit does not have to keep you from your dreams of real estate investing. With hard money loans Texas, credit problems can be no problem at all.

If you have bad credit, you may feel like you can never catch a break. Everything from car loans, to home mortgages, to store credit cards may be out of your reach. However, it is important to know that you are not alone. Bad credit is classified as a FICO score of less than 640 and nearly one in four credit using Americans fall into this category.

A low FICO score might make it seem like real estate investing is out of your reach. This is simply not true. With hard money loans Texas from Texas hard money lenders, the real estate investment market is within your reach. This is because hard money loans Texas are not based on your credit score. Instead they are based on the merit of the property you want to invest in. Texas hard money lenders are in more than the business of giving out loans, they are in the business of making money, for you and for them. If you have an idea that will yield substantial profits, they are usually willing to look past your less than ideal credit score.

If you are going to invest in a property with Texas hard money lenders and you have bad credit, you need to keep a few things in mind.

1. You will pay a higher interest rate for the loan. You are a high risk borrower so your hard money loans Texas will come with a higher price tag. Keep in mind that this is meant to be a short term, for profit loan and make sure you have an exit plan.

2. You need to be taking active steps to repair your credit. If you come to your Texas hard money lenders with terrible credit, no job, and are late on multiple payments, you can expect to not get a loan. You need to be able to show that your credit problems are a minor setback, not a regular habit. This means start making payments on time and have a source of income.

3. Come in with a plan. Have a property you want to purchase and timeline for selling it, as well as a realistic budget. Convince your Texas hard money lenders that YOU are a good investment.

4. Get to work and make money. The faster you complete your project, the less interest you will pay.

5. Enjoy your profits, rebuild your credit, and keep investing in real estate!

That's it, pretty simple, right? Call us today to get started!

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

  

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 Get The Money You Need With Texas Hard Money Loans!

Many people are confused about Texas hard money loans, but they shouldn’t have to be. Texas hard money is a loan where the investor receives their financing merely based on the value of the property they have instead of the traditional kind of bank loan that is dependent upon the kind of credit a person has. This can be a difficult loan to obtain for some kinds of people and that is why Texas hard money can be a truly wonderful thing.

You can use your Texas hard money loan to fix up the property. It is important to keep in mind that the longer you have the loan, the more interest you will pay. Rates vary based on the prime rate but you can expect to pay anywhere from six to eighteen percent, depending on a variety of factors. It is usually best to use Texas hard money loans as a short term loan options, not a long term financial solution.

While interest rates can be higher with Texas hard money versus other kinds of traditional bank loans, the rates are often worth the rewards. Approval times are fast, often in as little as two weeks. Also, your credit score is not a determining factor and neither are other aspects of your personal finances. Hard money lenders Texas base your financing on one thing, the merit of your investment property. 

It is important to remember that if you are having difficulty finding a traditional bank loan to finance your property, there are other ways. You can bypass the paper work and the hassle of a traditional loan and make good again with your Texas hard money loan. These Texas hard money loans will keep your foreclosure at bay or help you flip the house you have been thinking about for years. Don’t let your dreams escape you! Get to your hard money lenders Texas today and forget about the traditional lending conditions that have you nervous. You can have everything you always wanted with a Texas hard money loan. Call us today to find out what you can qualify for. Get the money you need and make your dreams come true!

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

  

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.