Texas Hard Money Lender

Saturday, November 21, 2015

Using Swift Hard Money Loans, Texas House Flippers Reap Benefits

In the real estate industry, being able to act fast is essential to your success. Using hard money loans, Texas house flippers can move swiftly, to generate bigger profits.

It’s always said that “money talks,” and in the real estate industry, this is true now more than ever. Years ago, everybody was in on the house flipping game. Nowadays, it’s usually just seasoned veterans and starry-eyed virgin homeowners that eyeball the properties, but being able to act fast and put money on the table remain absolute essentials for being successful.

Having access to solid funds gives you an edge in negotiations. As any experienced rehabber knows, many original homeowners are eager to unload their “money pits,” because they don’t even know where to begin when it comes to repairs. The idea of correcting defects in the home is so intimidating, that they’d rather grab what cash they can, and exit before the deal falls through. When you have the expertise to make the necessary repairs and improvements, and have exercised diligence, there’s a good chance you can offer the seller far less than they’re asking if you’ve got fast access to cash.

By having access to hard money loans, Texas rehabbers also win more bids. Experienced home sellers and real estate agents know what a hassle it is to go through the process of obtaining a traditional mortgage. Some policies that have recently been enacted can add weeks onto the wait time, and that’s only if the buyer’s mortgage is approved. Because of this, sellers often jump at the chance to work with someone who can streamline the process.

When Providing Hard Money Loans, Texas Lenders Have Minimal Eligibility Requirements

There are a lot of similarities between the people who provide this type of financing and rehabbers. First of all, you’re both investors. Secondly, your goal is to pour yourself into a project, and make a swift departure while securing a profit. That’s exactly what they do, so they don’t worry too much about your personal history. Instead, they evaluate the value of the project you’re working on, and what the market will bear for the home. Using hard money loans, Texas rehab funding can be provided in days, versus the weeks and months that traditional banks take.

There are some things to consider before going for hard money loans, Texas rehabbers should know about.

Having a solid exit strategy is imperative, as the hard money loans Texas lenders provide are generally short-term. This means that you’ll need to be certain you can flip the home within that time period, or have an alternate mode of funding or financing lined up for when the period ends. Most experienced rehabbers are very familiar with this anyway, and have a strategy, timeline, and goals mapped out before an offer is placed on a property. However, if governmental red tape throws a proverbial wrench in building alterations, or other unexpected delays occur, it’s important to have a contingency plan lined up. When this is taken care of, getting the funds needed to flip homes at a rapid pace and making a serious profit is much simpler.

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.

With Hard Money Lenders, Texas Homeowners are Avoiding the Pitfalls of Foreclosure

There’s an interesting trend occurring among people in danger of foreclosure. Using funds from hard money lenders, Texas homeowners are converting their primary residence into a rental.

The housing market has rebounded considerably, and many people are shrugging off the after-effects of the recession. However, financial issues can strike any family at any time, and very few of us have had time to set up safety nets yet. Most of the country is living paycheck to paycheck, knowing that the loss of a job or even an illness can mean total financial ruin. Interestingly, it’s hard money lenders Texas financial planners are sending people to, because they can help people transition to a new home in order to rent out their primary residence when these issues occur.

It’s a very simple concept. As people realize they’re in danger financially, moving to a more affordable home becomes essential. Unfortunately, sometimes houses just won’t sell, or the family wants their home back when the financial situation improves. By converting it into a rental, even temporarily, the homeowners become landlords, and can have their tenants cover the monthly mortgage. In some cases, homeowners actually earn income from the deal, while having another party pay down their debts.

Obviously, people who need to move because their house is in danger of foreclosure aren’t going to have a lot of cash to make the transition occur. By obtaining a loan from hard money lenders, Texas homeowners can cover the emergency expenses, and start generating income from their property.

Is Getting Help from Hard Money Lenders Texas Foreclosure Kryptonite for Everyone?

It’s important for homeowners to research their market to ensure that the house will rent out at a fair price, and still cover its mortgage and upkeep. In this day and age, most homes will do this, but it’s imperative to be certain before moving forward with the plan. Landlords will be responsible for the property, and whatever happens on it, so upkeep will be important, and tenants will need to be thoroughly screened. While there is some work involved in being a landlord, this process is saving homes and helping families recover financially after adverse events.

Using Funds from Hard Money Lenders, Texas Homeowners on the Verge of Foreclosure Can Prosper

Renting out a primary home in order to avoid foreclosure can be a family’s saving grace, and it’s a win-win solution for everyone involved. The family keeps their home, sometimes generates income, and another family gets a wonderful temporary home. Using funds from hard money lenders, Texas homeowners are able to get reestablished, but the process might not be right for every situation. It’s important to have a plan in place to ensure that the loan can be paid off swiftly, and that the property qualifies for this type of assistance. It’s generally most helpful when a family has significant equity in the home already, and doesn’t want to lose that nest egg or wants to retain the property for later. If you’re considering becoming a landlord, be sure to talk with a specialist before making a final decision.

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

5 Tips for Becoming a Successful Landlord Using Texas Hard Money Lenders

Many people are taking loans from Texas hard money lenders and investing it in a rental property. It can be a lucrative venture, but you have to know the industry well.

Texas hard money lenders can provide you with the upfront funds you need to secure a property that you wish to convert into a rental, but it’s up to you to turn it into a cash-flowing business.

1 1. Choose the neighborhood carefully. You’ll need to scout out which neighborhoods have high rental rates, so your vacancy gets filled and stays full.

2. Select a home that needs cosmetic repairs. Unsightly defects are easy to fix, but they can greatly reduce the price you have to pay for the home. Have it checked out by a contractor before you sign, so you aren’t surprised by costly repairs later.

3. Research rental rates and compare your total expenses and upkeep with what you can expect the home to rent for. Don’t upgrade the house so much that your rental fee exceeds similar homes in the neighborhood.

4. Screen your tenants carefully. You’ll need to run background checks and possibly credit checks as well. Set up your rental contracts to protect you in the event your tenant isn’t everything you hope for.

5. Have a plan for refinancing or paying off the home when the loan from your Texas hard money lenders concludes. Although this type of funding can help get your foot in the door, it isn’t a permanent solution.

Is Becoming a Landlord Using Texas Hard Money Lenders Right for You?

The choice to become a landlord shouldn’t be taken lightly. It requires a lot of planning and strategic thinking in order to turn it into a successful venture. However, once you have the initial work done, it’s generally just a matter of keeping up with regular maintenance around the home and troubleshooting any issues your tenants have. Although it isn’t truly residual income because you have to make sure the house remains in proper form, it’s often a very laid-back job that doesn’t require too much attention. Most of this comes down to excellent planning and choosing the best tenants.

Is Getting a Helping Hand from Texas Hard Money Lenders the Best Way to Become a Landlord?

There are many paths that can lead to the same outcome- obtaining a rental property. However, banks will look at your credit history, income, and other details to see if you qualify for a loan. Texas hard money lenders mostly focus on the value of a property, and the funds they provide can kick off your entrepreneurial start. If you have a strategy for how to obtain a long-term mortgage after the term ends, or you’ll be able to pay off the debt in its entirety, it could make the whole process much simpler. It’s always advisable to get the opinion of an expert before delving into things, but in the end, you’ll have to weigh the pros and cons for yourself.

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

Work at Home? Using Hard Money Loans, Texas’ Self-Employed Can Become Homeowners

It’s kind of odd the way people who follow the American dream and choose to start their own business get penalized. In many cases, it disqualifies them from becoming homeowners with traditional mortgages, but with hard money loans, Texas’ self-employed people can own a home, too.

“Good Luck Getting a Mortgage.” That was CNBC’s message to the self-employed when they covered just how difficult it is to buy a home when you’re your own employer. It’s hard enough to get a mortgage as it is, but those who work from home or freelance have an even more difficult time. A study from Zillow discovered that self-employed individuals only get six loan offers for every ten that traditional employees do.

Difficulty obtaining an offer is just the start of it, though. CNBC reported that some banks are demanding several years of tax returns, corporate tax returns, and even Googling their applicants. One unlucky would-be borrower was quizzed about the names of clients who were using her freelance writing services, which she aptly summed up as “intrusive.”

Data shows that self-employed people make about 81% more than those who work for traditional employers, but that doesn’t seem to matter to banks. Entrepreneurs wind up having to fork over an average down payment of 15.3% percent, while their salaried counterparts generate a mere 14.6%. Using hard money loans, Texas’ self-employed can get around some of the issues, but very few people are familiar with the method, even though it’s been around for seemingly forever.

When Considering Hard Money Loans, Texas Borrowers Don’t Have to Worry About Eligibility

When doling out hard money loans, Texas lenders tend to focus more on the value of the property being purchased, rather than the financial background of the individual applying. This makes it much easier to get approved, and far less “intrusive.” Because the self-employed have so much more paperwork to manage with a traditional mortgage, the length of time it takes to seal a deal can be months, if it ever happens at all. With this method, the timeline is much shorter, even compared to what a salaried employee might endure. Loans are often funded within days, rather than the weeks or months a traditional path might take.

To get advice on hard money loans, Texas borrowers should always consult a pro.

There are many varieties of hard money loans Texas lenders specialize in, and there are solutions for just about every circumstance. While some options are geared more towards people who purchase with the intent to rent or flip, certain packages are put together especially for people who are self-employed. For this reason, it’s always a good idea to speak with someone who handles several types of loans, so you can be sure you’re getting the right one for your needs. CNBC’s succinct quip was sadly true about the traditional mortgage industry. Thankfully, there are other means available that put homeownership within reach, even for those who write their own paychecks.

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

Friday, November 20, 2015

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

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

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