How to Fund Your Fix and Flips with Hard Money Loans in Dallas, Texas?
Admin - Aug 24, 2016
Whether you are an experienced real estate investor or newbie, you can’t resist the temptation of fixing and flipping of homes. Fixing and flipping is the way to get good returns on your investment.
You buy the property, repair it and then sell it at good prices!
The dramatic sales of distressed properties and the huge demand in fix and flip loans in Dallas, Texas point toward the popularity of flipping trend among investors. For this practice, many investors opt for the hard money loans which are easily and quickly available, even on the poor credit.
Let’s see how you can be qualified for the hard money loans to fund your fix and flips if you haven’t done it before.
Consider the Value of the Property:
A hard money lender is driven by the value of the property, especially after some repairs and remodeling. Hard money lenders typically finance up to 65-70% of the after repair value (ARV), You must have a fair estimation of the real value of your investment property as the lender may like to know how much value will be increased with the repairs that you plan to do.
In a nutshell, a property with good value is likely to inspire hard money lender to invest in your deal as well. In this way, you can get hard money loans for flipping houses easily.
Determine Your ARV:
While it has been said earlier that a hard money lender gives weightage to property value, you must have the fair estimation of ARV. For that, you can ask your Realtor for a CMA and your contractor for an estimation of the cost coming on repairing of your property. You can also collect estimations from other contractors to show them to your lender this adds confidence that the repair budget is in line with what will be needed. It also helps you when you get multiple bids as you may learn something new or get ideas from every contractor you meet with.
Maintain an Ideal Credit Score:
A hard money lender is less concerned about the credit score. However, most hard money lenders do look at your credit as a factor so the better it is the easier to get a loan. Besides, real estate investor’s track record must be free from the recent bankruptcies and foreclosures. If they are old the lender may not care. If your credit is bad, having a friend or family member with excellent credit to sign on the loan can also be very helpful in achieving loan approval.
Organize Your Paperwork:
A paperwork including your financial information gives an insight to the lender about your financial situation. In this way, he can discuss the options, budgets, and issues with you. Consider, the more organized you present your documents to the lender is a clue to how you run your real estate investment business so the more organized the better.
Working on these four points, you can easily get hard money loans for property flipping.
And if you’re looking for a lender for fix and flips loans, look no further than Loans 4 Investors. We are the hard money lenders based in Texas and specialize in hard money loans including fix and flips, build spec, cash out refinance and landlord acquisition loans. Apart from Texas, we cater to the needs of the lending market in Oklahoma, Arkansas, Mississippi, and Tennessee.