Learn To Be A Fix and Flip Investor: Expectations of Texas Private Money Lenders

Tuesday, April 9, 2019

Expectations of Texas Private Money Lenders

Sometimes in order to be approved of a loan, you need to turn to untraditional lenders. But who are they, and what expectations do they have of their borrowers?

Ken and Hannah were looking to fix and flip a home. Ken was experienced in interior design, but neither of them had ever flipped a home. Needless to say, when they turned to their local bank, they didn’t qualify based on the hours of HGTV they had binged.

Ken and Hannah continued to put in research. Their credit score and debt to income ratio did not qualify them with their local bank, so they were interested in pursuing private, untraditional lenders. Before they dove in head first, however, they needed to complete their research to determine if untraditional lenders were right for them.

Who Are Texas Private Money Lenders?

Texas Private Money Lenders are untraditional lenders. They consist of private companies or investors who offer hard money. Untraditional lenders can be great options when you don’t qualify for a loan because they are able to approve more people by focusing on the property’s collateral. Banks solely focus on your financial history. Sometimes even a successful portfolio isn’t enough to sway them. For that reason, many people will turn to private Arizona Hard Money Lenders who focus on the property, the potential and the plans, all before considering your financial history. Your financial history is still important—they want to know you will be a reliable borrower—but it won’t make or break you in the long run.

Are Arizona Hard Money Lenders Right For You?

When Ken and Hannah met with their hard money lender, they quickly learned that there was more to them than meets the eye. They were excited to see that their property was one of potential, and because of it, they were anxious to grab it from what could be a very competitive market. However, a few things were holding them back. Arizona Hard Money Lenders have high interest rates and fees that they needed to consider. Because Ken and Hannah had limited experienced fixing and flipping, they wanted to be sure they could afford the high finances associated with private lenders. Additionally, they found there was a short repayment period. In some cases, this may not be a good thing, but because Ken and Hannah were looking to renovate a home and hopefully sell quickly with a profit, it fit the natural timeline of their fixer upper. Ken and Hannah realized that working with their private hard money lender may be a little bit of a risk with the extra finances, but they decided to go for it. Though, for some extra confidence, they did decide to have a real estate attorney look over the terms of their loan agreement. Sharon agreed with them and confirmed that their lender had a reliable history and that many professional home renovators work with Texas Private Money Lenders for the same reasons. Ken and Hannah were able to successfully renovate their home, and found the expectations of their private hard money lender to be reasonable for their situation, even if they may not be for everyone.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC 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.