The media has
sensationalized the rehab and flip business, making it seem like it’s easy cash
for anyone who jumps in. The truth is, you have to have a keen eye for
investing, and know how to evaluate the home before you get started, especially
when you’re using Texas hard moneylenders.
1.
Calculate what the home will be worth after
repairs. To do this, you’ll need to research what comparable homes in the area
have sold for over the past 90 to 120 days. They should be in a similar
neighborhood, have the same number of bedrooms, bathrooms, and square footage,
and also be about the same age. Target an area within ½ to ¾ of a mile from
your potential rehab project.
2.
Consider what the repairs should cost. Some
re-habbers swear by a $20 per square-foot rule when it comes to cosmetic
renovations. However, it’s always wise to bring a contractor on board to verify
your estimates before you finalize things, even if you’re going to do the work
yourself.
3.
Include any contract fees and the loan costs from
your Texas hard money lenders in
your total expense estimates.
How to Tell if a Flip Using Texas Hard Money Lenders will Be Successful
You should only borrow from Texas hard money lenders if you’ve done the
research and you’re familiar with potential rehab pitfalls.
There’s a big difference between making a calculated
decision based on knowledge of the housing market, and in making repairs with
the hope to turn a profit. Not every rebab is worthwhile. If you’re just
starting out, choose the simplest projects, and include professional
contractors in your budget. You can test your knowledge in rehabs by scouring a
neighborhood, and making your own predictions of what houses will sell for once
they’ve undergone renovations. You may also have better success if you find a
seasoned rehabber and spend some time working as an apprentice for him.
Fix-and-flips aren’t for everyone, and getting started in the industry requires
real estate knowledge, as well as a solid background in home repair and
estimates. Texas hard money lenders
can provide the short-term cash you need to make a deal, but you’ll need to
have the knowledge to ensure you’re making a wise investment. If you have these
things in your own mental toolbox, fix-and-flips can be incredibly lucrative.
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
dennis@level4funding.com
www.Level4Funding.com
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
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.
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.
