6 Benefits of Investing in Real Estate Using Hard Money Lenders in Texas

6 Benefits of Investing in Real Estate Using Hard Money Lenders in Texas

Real estate investing is one of the most popular methods, and getting started by using funds obtained from hard money lenders in Texas makes it easier to start generating cash. Although there are many benefits to going with real estate, we’ve narrowed it down to the top six here.

1. The real estate market is fairly predictable. Unlike stocks and bonds, it’s much easier to determine what the return on investment will be well ahead of time.

2. Cash investments rise with inflation when they’re put into real estate. If you’re planning to rent the home, the monthly rental fee can easily be increased to keep up with inflation, so you’re never missing out on profit.

3. Real estate investments tend to hold steady in the long-run. Especially when the economy is unsteady, and investors are worried about stocks and bonds failing to provide adequate returns, the finance-savvy turn to real estate.

4. Because real estate investments are steady, their equity can provide opportunities for future investment opportunities. This is why hard money lenders in Texas generally base their decision on the value of a property, and weigh it more than other factors. Once the property has equity, it can be used to procure more properties, or be shifted to other investment vehicles. Because mortgages tend to be more easily accessible than other types of loans, like personal or business loans, the cash can often be unlocked later. Moreover, the interest on a mortgage is tax-deductible, making it a financially-smart choice as long as the risk is worth the gain.

5. Aside from the obvious cash flow that comes from renting a property out, fix and flips can provide solid instant returns as well.

6. Even if you opt not to sell it or rent it out, you can still use the property for your own needs, and it will generally continue to increase in value.

Know How to Evaluate the Market Before Contacting Hard Money Lenders in Texas

As with any type of investment, it’s important to have a keen understanding of what’s happening in the market before procuring a loan from hard money lender in Texas. You’ll need to be sure that the market is currently behaving as it traditionally does, and evaluate the trends. Even small fluctuations can indicate that it’s smart to hold off on buying if prices are dropping a bit, or to sell if they appear to be peaking.

The more information you have about packages offered by hard money lenders in Texas, as well as the industry and market, the less risk is involved in real estate investments.

All investments carry some amount of risk, through real estate tends to fall into the low-risk category. The amount of risk can be further reduced by becoming familiar with all the packages hard money lenders in Texas offer, and by learning as much as you can about the real estate market before you begin.

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

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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

How to Make Money with Texas Hard Money Lenders: Buying and Holding vs Flipping

How to Make Money with Texas Hard Money Lenders: Buying and Holding vs Flipping

There are two main strategies that people use when investing in real estate- buying and holding or fixing and flipping. Here’s a quick guide to help you choose which method is right for you if you’re working with financing from Texas hard money lenders.

Seasoned pros have had time to hone in their skills and know which investments work, but newcomers often stumble in the beginning, and that can become costly. Texas hard money lender provide short-term loans with very light restrictions, which makes it easy for just about anyone to get into real estate investing, but choosing the right strategy is essential.

Buying and holding a property is usually part of a long-term strategy. People who use this method are familiar with the housing market, and they buy homes at a low price with the intent to hold onto them until they increase in value. They may purchase a property that needs renovations, or a home that’s ready to be lived in right away. While they wait for the value of the home to increase, they’ll often rent it out to others or live in it themselves.

Fixing and flipping is usually a short-term income strategy. People buy homes in need of repairs, often using funds from Texas hard money lenders, and then they sell the homes right away for immediate profit. In order to be considered a fix and flip, the property is generally bought and sold again in less than a year.

There are Benefits to Both Holding and Flipping using Funds from Texas Hard Money Lenders

While both types of investments can begin with funds obtained from hard money lenders Texas, people who hold their properties generally switch to another type of loan once the renovations are complete, and they’re ready to move someone into the home. When the investor truly knows the market, both holding and flipping properties can be profitable. However, the flipper is concerned with short-term gains, and the holder will have money tied up in the property for years, if not decades.

Many successful flippers take advantage of Texas hard money lenders for flips, and diversify with held properties as well.

At some point, even the most skilled house flipper maxes out how much he can accomplish on his own. Despite utilizing a team of professionals, there’s a limit to how many houses a single person can oversee rehabs on at once. When experienced flippers hit this point, they often decide to diversify, and keep some money invested in properties they’ve already worked on. Of course, it’s always smart to diversify assets, so it’s not necessary to wait until you’re flipping 20 or 30 houses before you start holding onto some. Both are sound investment strategies, though it’s important to know what trends are occurring in the housing market, to ensure that a long-term hold property will continue to increase in value, and that a short-term flip can be sold quickly at a good price as soon as you finish with it.

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

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 39 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

Hard Money Loans: Texas Craigslist Home Seller’s Obscure Expectations

When Craigslist ads insist on hard money loans, Texas buyers are often left confused. In theory, the seller shouldn’t care how you fund the home, but there’s a good chance he knows something you don’t, and that you won’t qualify for a traditional mortgage.

Craigslist is great for a lot of reasons, and one of them is its vast real estate offerings. Whether you want to buy or rent, hope to find a massive estate or a cozy abode, there’s a good chance it’ll appear there at some point. However, some of the properties that seem to be offering the best deals insist that buyers obtain hard money loans; Texas newbie buyers are bewildered by it. Why does the seller care where you get the money to buy the property? The short answer is that he’s probably familiar with qualifications for traditional mortgages.

The FHA has certain guidelines regarding qualifications for mortgages, and most lenders adhere to them. Generally, the standards are set to ensure the house is livable, but they can be pretty extreme. At one point, homes had to be completely floored in order to qualify for a loan. A person would be disqualified if they tried to purchase a house that was missing something minor, like carpeting. Nowadays, the rules are a little looser, and mostly mandate that major systems within the home are functioning. This includes things like electrical, plumbing, and HVAC systems. It also extends into roofing, and holes in the walls.

More than likely, that home with the amazing price is lacking in at least one of these departments, and the seller knows it won’t qualify for a traditional mortgage just yet. This doesn’t mean it’s not a great deal. In fact, it may be fantastic chance for a new homeowner with handyman skills to get his hands on a bigger home than he otherwise could, but he’ll have to fund the project without a traditional mortgage.

Using Hard Money Loans, Texas Buyers Qualify when Homes Don’t Meet Eligibility Requirements

Unlike traditional loans, hard money loans Texas buyers use are not subject to the same FHA rules. So, even if the electrical system needs TLC or the roof needs to be redone, you can still qualify for funding. People experienced in real estate or finance know this, and so they’ll warn you right away in their ad that you’ll need a non-traditional mortgage.

Special lenders offer hard money loans Texas residents easily qualify for- even with rotten credit.

Another huge difference between hard money loan Texas financers offer and those from a traditional bank, is that qualifying for a loan is generally based on the property’s value, and not the borrower’s credit. This allows anyone, even people with terrible credit or bankruptcies, to purchase a fixer-upper and have their very own home. It’s worth noting that this type of financing is generally only used as a short-term solution, and most people who intend to live in the home later transfer to a traditional mortgage once the work on the home is complete. For this reason, it’s also important to know exact details about how much work the house needs, and to be sure that you can complete the work within a reasonable amount of time, while staying on budget. With these things in place, that home with the obscure seller demand just might be one of the best deals you’ll find.

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

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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

3 Things to Consider to Ensure Your Hard Money Arizona Loan is a Smart Move

3 Things to Consider to Ensure Your Hard Money Arizona Loan is a Smart Move

Jenna Jacques, licensed realtor and experienced home-flipper, allowed us to pick her brain on how to make smart moves in the industry. In this final installment of a four-part series, we present the information she gave us on how to be successful with hard money Arizona fix and flips, as well as how to choose the best partners.

As a highly-experienced real estate agent, Jenna Jacques’ Zillow reviews now boast that she has sold more than 40 homes in the past 12 months. While many of these are traditional home sales, a good portion of them are also her own rehab projects. She’s had the opportunity to work with numerous loan types over the years, so when it comes down to doing hard money Arizona fix and flips, she’s able to provide a helpful and unbiased opinion on what works.

1. Educate yourself on loan structures and payment expectations. The first bit of advice Ms. Jacques shared is that “Hard money loans are a great way to be able to fund your rehab, but make sure you know what you’re getting into.” The terms hard money Arizona lenders offer are different from traditional loans. Although they’re much easier to obtain, because approval is largely based on a property’s value, they’re geared more towards short-term borrowers.

2. Choose a reputable lender. “It is important to work with someone you trust and someone that has your best interest at mind,” Ms. Jacques explained. Packages offered by different lenders will vary greatly. The interest, number of origination points, length of the loan, and other details will change, so you have to work with someone who genuinely cares about helping you succeed, so you receive the best package possible.

3. Be familiar with the industry as a whole. When we asked Ms. Jacques how she got her start with fix and flips, she responded, “I did research, lots and lots of research.” Having a firm understanding of the industry and process as a whole plays an integral role in your overall success. Before you get into financing or buying a home to rehab, you have to know whether the home will pay off.

Successful Rehabbers Using Hard Money Arizona Loans Make Calculated Decisions

Probably the most continuous theme in the interview with Ms. Jacques is that she’s an advocate for education. Every time she flips a home, it’s systematic. She evaluates it on several levels, and only goes forward when the property meets all her criteria. Her behavior is typical among successful flippers. While newcomers to the trade may rely on gut feelings and hope for the best with an investment property, the seasoned flipper stacks the deck in her favor, by only choosing to work with properties that add up. She also plans every aspect of the rehab, so she knows exactly what will happen and on what kind of timeline.

By using hard money, Arizona fix and flips can be a successful and lucrative venture.

Ms. Jacques’ story is very inspiring, and shows how far self-empowerment can take a person. She’s actually a nurse by trade, though she always had an interest in home renovations and real estate. She took it upon herself to learn everything she could before she began- not just about hard money Arizona lenders provide, but about the industry as a whole. With that said, there might be something more to the secret of her success. “I love helping people find their dream homes,” she explained. While it’s clear she has found her calling, and that it has helped her on the path, she doesn’t dissuade others from following suit either. Instead, she advocates self-empowerment, and suggests that anyone getting into the business do as much research as possible before jumping in.

If you’d like to read more about Jenna Jacques or connect with her, visit her on Facebook or check out her personal website, JennaJacquesHomes.com.

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

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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

7 Things You Should Ask Before You Fix and Flip Arizona Homes

Pro Advice: 7 Things You Should Ask Before You Fix and Flip Arizona Homes

This is the third installment of a four-part series, in which we interview licensed realtor and expert in fix and flip Arizona properties, Jenna Jacques. During the discussion, Ms. Jacques revealed seven questions every would-be flipper should ask himself before procuring a rehab project.

1. Do you know the area? There are all sorts of things a home rehabber should know about the territory he works in. The price of similar homes that have recently sold in the area are only part of the equation. You have to know the schools, what the traffic is like, if the neighborhood is expecting any major changes, and other seemingly minute details.

2. Do you know the market? The fix and flip Arizona market is ever-changing, and even neighborhoods and subdivisions follow their own trends. You have to be able to make accurate predictions on what the property will be worth once the renovations are complete.

3. Do you have a cushion? Whether you’re taking out a hard money loan or saving up your own cash, you must set aside funds for unexpected expenses. Sometimes necessary repairs don’t become apparent until the renovation is underway, and other times they can prove to be far more costly than the budget allows for.

4. Do you understand the holding time? When you fix and flip Arizona properties, having a solid timeline in mind is essential. Knowing how long you have to complete a project, and keeping everything on schedule, can make a huge difference in the amount of profit you see.

5. Are you aware of the industry? From bidding, through buying, renovating, and selling, you’ll need to be in contact with numerous professionals. You also have to have a keen understanding of the process, and be familiar with trends.

6. Do you know a realtor that works in the industry? Some flippers try to sell a home on their own, which can be a particularly big challenge when it comes to marketing and negotiating with buyers. It’s important to partner up with a realtor, but not just anyone will do. If you partner with someone who works in the industry already, you’ll have instant access to a huge knowledge base. You’ll also be working with someone who is highly familiar with your goals, and knows how to flip a home fast, for maximum profit.

7. Who is going to do the work for you? While some start-ups do all the renovations independently, there are numerous professionals you may need to call on at some point to get an expert job done fast. Electricians, plumbers, contractors, painters, and other helpers are beneficial, but you’ll need to establish relationships with trustworthy people before you begin.

Arm Yourself with the Knowledge Necessary to Be Successful when You Fix and Flip Arizona Homes

Throughout the interview, Ms. Jacques repeatedly hit home the importance of research. You can’t rely on others to provide accurate information on a neighborhood or particular home. In order to be truly successful, you’ll need to do the legwork when it comes to determining costs, timelines, values, and necessary repairs. When she began in the industry, she swore off mentor programs and gimmicks, and dove into research headfirst on her own. “Any person on the street may tell you one thing, but at the end of the day, you have to do the research for yourself and understand what exactly you’re doing.”

Avoid the common pitfalls of fix and flip Arizona properties by evaluating each one independently.

Ms. Jacques cautions people who want to fix and flip Arizona properties, “Don’t just buy a house to buy it!” Know the stats on each home, and act on real information, not impulse. She also noted, “There are always ‘deals’ out there,” but having a solid comprehension of the risk involved and taking that into account when performing the initial evaluation of a property is an absolute must. Even though the home rehab enthusiast often receives tips from others as to which homes are hot for flipping, she’s discovered over time that those rarely live up to expectations. “My best deals are the ones I find myself,” she added, but Ms. Jacques also has a system for evaluating each home before she dives into a project, and with all the knowledge she’s amassed over the years, her selections and renovations can’t help but be fruitful.

For more information on Jenna Jacques, see her reviews on Zillow, or visit her Facebook page or her personal website, JennaJacquesHomes.com.

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Hard Money, Private Money Lender
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

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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

4 Ways People Who Successfully Fix and Flip Arizona Properties Think Differently

4 Ways People Who Successfully Fix and Flip Arizona Properties Think Differently

We were lucky enough to speak with Jenna Jacques, who specializes in fix and flip Arizona real estate properties. In this second part of a four-part series, we’ll reveal some of her keen insights that have led to her success.

Just moments into the interview with Jenna Jacques, it became clear that she’s not only a woman who has a deep comprehension of what it takes to fix and flip Arizona properties successfully, but her persistence and unfailing optimism lend themselves well to the business. As a licensed realtor, she has more than 40 home sales under her belt so far this year, and they’re a fair mix of traditional sales and houses she rehabbed. Ms. Jacques was kind enough to share some of her experiences with us, so that newcomers to the trade can benefit from the knowledge.

1. They plan and build a solid foundation before they start. “A person really needs to know what they are getting into before they want to call themselves a flipper,” Ms. Jacques explained. There is a lot involved in the process, and you have to be prepared for each challenge you’ll face. Before she began, she and her husband worked several jobs for more than a year to build up a cushion. Rather than paying for a gimmick or an online get rich quick scheme, she also took the initiative to learn the ins and outs of the industry on her own.

2. They don’t settle for something just because it appears to be a good deal. Throughout her years in the industry, the seasoned flipper has come to the conclusion that the best deals are the ones she finds on her own. She also advises people not to purchase a rehab property out of anxiousness, but to wait for the right property, and to do the necessary research to know it’s really a good deal before getting started.

3. They know how to select reputable people to work with, and also how to protect themselves when even “reputable” associates fail. Even though Ms. Jacques is an open book, when asked about deals gone bad, she acknowledged, “I had a wholesaler try to take advantage of me and go behind my back to make a quick buck.” While the loss would have been costly, her experience and expertise paid off, and she was able to take the steps necessary to protect herself. Ms. Jacques added, “In this industry you have to be able to stand up for yourself and not be defeated.”

4. They’re prepared to be the last man (or woman) standing. Unfortunately, it’s difficult to find reputable and trustworthy people to work with, and even people who fix and flip Arizona properties on a regular basis wind up holding the bag at the end of the day. “I have been through so many painters and people who only half finish the job,” explained Ms. Jacques, “but at the end of the day you have to be able to have the backbone to just keep on at it.”

You Can Make Your Dreams Come True, 

Even if You Don’t Have a Background in Fix and Flip Arizona Real Estate

Ms. Jacques’ story is truly inspirational for those who are considering trying to fix and flip Arizona properties. Her humble beginnings serve as proof that anyone with the right attitude can be successful. Like so many others, she always had an interest in home rehabs, and relished in exploring the before and after photos produced by experts in the industry. Though she held two masters degrees, they were in nursing and administration, so she pursued nursing as her career, and only dabbled in real estate for several years. Ms. Jacques explained that the major catalyst in her decision to begin rehabbing homes came when one of her twin daughters was diagnosed with a sensory processing disorder. Her nursing administration position couldn’t accommodate the time she needed to take off work for appointments, and despite having medical insurance, bills began mounting. “This is when I decided we would take the risk and hope for the best,” she continued. “What else could a parent do in a situation like this?” Of course, Ms. Jacques isn’t just taking care of her family and making her own dreams come true, her expertise has enabled her to improve the lives of many people, as can easily be seen by her perfect five-star rating on Zillow.

Resilience goes a long way to becoming successful with fix and flip Arizona properties as well.

While “resilience” seems to be the buzzword of today, it sincerely applies here. The passion for the business that Jenna Jacques conveys is absolutely contagious, though listening closer to her stories, you’re sure to catch an underlying theme. Each and every time she faces adversity, she’s prepared and bounces back. If you can capture her spirit and enthusiasm for the business, you, too, just might have a future in home rehabs.

Want to learn more about Jenna Jacques or get in touch with her? Visit her on Facebook or at JennaJacquesHomes.com.

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Hard Money Lender
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

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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.