When you start in any industry, you may need a little help or advice as you get familiar with the tricks and trades of the role. As a real estate investor that wants to “fix and flip” investment or foreclosure properties, hard money lenders can help you get started.
Real estate investing can earn you a pretty penny – but it also takes a few of those pennies to get off the ground. If you don’t have a lump sum of cash to put into this industry, you’re going to need a loan. Many foreclosures or auction properties require cash on the spot – if you don’t have it, you won’t get the property. Bottom line. So be prepare with cash in hand… a lender can help you with that part.
While there is definitely more to fix and flipping homes than people tend to believe due to the glamorize version of the job they see on “reality” shows on TV. If you are thinking about getting into the industry, make sure you know about the nitty gritty aspects of the work involved. Hard money lenders that are experienced in this industry can be the first to tell you that the “fix” portion of the job can entail a lot of fixing up and sometimes total renovation. There is no telling why a property was foreclosed on but sometimes it is subjected to a lot of damage before the homeowners move out … or after.
When you look for a property, hard money lenders will tell you that one of the most important things to look for (even more important than the amount of possible damage to the home) is location. “Location, location, location” are the three biggest things to look for when looking for a home. It is easier to sell a home in a nice neighborhood, one that is not directly on a major road, and other criteria that prospective home owners are looking for when purchasing their “dream home.”
When you get the property, make smart decisions when you start to upgrade.
Professional lenders will tell you that upgrades and remodels are important, but make sure they are budget friendly, and don’t “overshoot” the upgrade. You don’t want to be the worse home on the block, but you don’t want to be the very best either – as homes’ values are relatable to those surrounding them. Try to find a good reliable contractor that you trust to make the necessary and best upgrades for the money – and the ones that won’t depreciate down the line. Do the best you can but without losing money on improvements alone or you might not be able to recoup what you spent. And aren’t you doing this to make money?
Spend some quality time learning about this industry before diving in.
Lenders experienced in this industry can be a huge asset for you if you are just starting out “fixing and flipping.” Many have seen successes and failures in relation to what many people perceive as a fun and easy way to make money, based on reality TV. It definitely can be, but you have to be educated about your best moves. And starting with a hard money loan can be a great start.
Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com 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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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