Learn To Be A Fix and Flip Investor: 3 Things Texas Hard Money Lenders are Looking for in 2019

Wednesday, March 6, 2019

3 Things Texas Hard Money Lenders are Looking for in 2019

Knowing what Texas Hard Money Lenders are looking for will help ensure you get approved. If you do your homework and map out a solid plan, 2019 is going to be a successful year.

1. Experience. There are fewer opportunities to buy low and sell high than there were in recent months and years. If you’re in fix-and-flips or fix-and-holds, that means most of your money needs to come from the project itself. If you don’t already have experience in one of these areas and you plan to start this year, start by working with a partner or two. Not only will this increase your chances of getting funded, but it’ll eliminate the learning curve, so you reap bigger profits.

2. Smart investments. If you’re researching with a property in mind, stop for a moment and consider why you picked that property. If property values, demand, the condition of the property, and hard numbers are rolling through your head, you’re on the right track. If you had an emotional response to the question, then you’re getting in for the wrong reasons. That will likely show when you make your case with Texas Hard Money Lenders, so reevaluate your numbers and make sure they’re nailed down tight.

3. Diligence. If you’re purchasing a distressed property, make sure it can be purchased free and clear. If there’s any concern or confusion, speak with a title company in advance to find out what needs to be done to correct issues. It’s also helpful to bring on an appraiser and contractor if you aren’t experienced in these areas, to make sure you’re not overlooking any issues and are working with the right figures.

Adjust Your Expectations for the Changing Market

If you’ve worked with Texas Hard Money Lenders in the past, the general rules are the same. You can still get funded for a project that’s planned well, even if your credit isn’t great. However, because prices have risen and slowed, the details of your plan matter more than ever. While you may be able to find a really great property and profit from a smart buy, the bulk of your earnings will come from managing the project well and having a good exit strategy in place.

If you can work one successful deal, you can create a dozen.

Some say there’s no “magic formula” for real estate investing, and perhaps that’s true to some degree. Each property has unique needs and no two deals will ever be exactly the same. The one thing that doesn’t change is you. Some people are simply more successful than others, and that comes down to how they’ve refined their processes over time. They understand there will be challenges ahead and they plan for them. They know their numbers and evaluate each deal on its own merit. That not only makes them more successful in the biz, but is also why they have no trouble at all getting funded when they approach Texas Hard Money Lenders.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.