Dennis Dahlberg - It Can't Get Better Than This!

Friday, March 8, 2019

3 Reasons Why Texas Private Money Lenders are Better than Crowdfunding

Crowdfunding has surged in popularity and certainly has its place, but it’s not always the best choice. Learn why working with Lender may be the better solution for your situation.

Recent changes to crowdfunding legislation have made it more popular than ever. Whereas in prior years, only the wealthiest could invest, nowadays almost anyone can, though the maximum amount people who aren’t wealthy can invest is still somewhat modest. It may be tempting to go this route because of its popularity, but it’s important to evaluate each potential funding solution and make sure it’s a good fit for your project before jumping in.

1. Equity crowdfunding means giving away part of your company. If you’re genuinely ok not being the sole owner and don’t mind answering to your shareholders, that’s one thing. However, if you’re starting a business you plan to manage for years to come, or perhaps even a lifetime, giving up your stake in it can be a drastic measure. With Texas Private Money Lenders, your business and your assets are yours, so long as you fulfill your financial obligations.

2. Regular crowdfunding works better for tangible goods and brand-building. If you have a product you want to sell and are hoping to build up a loyal fanbase before launch, traditional (non-equity) crowdfunding can help in both areas. Plus, it doesn’t require that you give anyone stock. However, if you’re doing something that is a one-off project or involves a service, crowdfunding doesn’t work particularly well. Many other forms of lending are better suited for these situations.

3. You may be at the mercy of the platform’s (and its affiliate’s) policies. Let’s say your new business is a special type of gourmet chocolate and people are flocking to support you. That’s great, or maybe not so great if your product has CBD in it. Unfortunately, businesses are still wary of working in specific industries—this is only one example—there are many. If the platform takes issue with you, they’ll cut you off. If their payment processor or bank takes issue with you, they’ll cut you off. If they have advertisers on the site who take issue with you… you get the idea. They can cut you off virtually anytime they wish and for almost any reason. Read their contracts.

Alternative Funding is About Creating a Win-Win Solution

These issues don’t exist when you work with Texas Private Money Lenders because they learn what you’re about from the onset of a project. While it’s true that some don’t like to fund specific types of projects, there are others who prefer it. Your broker will make sure you’re matched up with someone who believes in your business plan every bit as much as you do.

When you understand the benefits of various funding solutions, a clear winner will emerge.

Just like crowdfunding isn’t right for every situation, working with Texas Private Money Lenders may not be ideal for every time either. However, if you need a short-term cash injection for your business quickly and don’t want to give up equity, talk to a broker to learn more about alternative lending.

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.

Thursday, March 7, 2019

How to Find Texas Private Money Lenders for Real Estate

If you’re getting into real estate investing, establishing ties with people who can fund your deals is essential. A good broker can put you in touch with Texas Private Money Lenders who understand your goals and will contribute to your success.

Real estate investors often turn to alternative forms of financing because they need to move quick on a property or for the easier approval process, and Texas Private Money Lender fall within this subset. As the term implies, Texas Private Money Lenders are not banks, and so they’re not subject to the same lending regulations. That’s why they’re able to get you money faster and can get you approved even if you have rotten credit.

The term is often thought of as synonymous with Texas Hard Money Loans; financing that’s backed by the value of your asset (the property) and your perceived ability to enhance the value, rather than your credit score. Because of this, a fair amount of legwork has to be done before you go looking for financing. Having a good investment property selected, knowing your numbers, and working out a comprehensive timeline and budget should all be taken care of before you approach anyone for funding.

When you’re ready to start exploring real estate funding options, it can be a bit of a challenge to find the right financing team, simply because you’re not really dealing with Goliaths in banking, but regular people who have the means to finance your deal. While you can run searches on Google and check forums, that only gives you a small slice of information, and they may not help you find the right person for your needs.

An Experienced Broker Will Explore Options with You, So You’re More Successful

This is where brokers come in. They handle the networking for you and are familiar with lots of people who help fund real estate deals. Again, as individuals, each person will likely have his or her preferred areas, be it single-family houses, multi-family properties, distressed homes, specific regions, and so forth. Plus, each one will have his own terms too. An experienced broker will match you with the right person. Moreover, he or she will see what you’re bringing to the table and may even help you refine your strategy, so you’re better prepared to make a good pitch, and will ensure you’re getting the best terms possible for your situation.

With the right lending partners, you’ll build relationships and they’ll be there to lend a helping hand anytime you need them.

Both brokers and Texas Private Money Lenders want the most secure investments possible, so once you’ve become established with lending partners, and you’ve had a successful run, they typically want to be part of your future projects. In other words, do your homework first, then connect with an experienced broker, and you’ll always have funding for your real estate deals.

Top 3 Ways to Maximize ROI When Flipping with Texas Hard Money Loans

Texas Hard Money Loans are a great way to fund fix-and-flips and turn a profit. Optimize your projects with a few key strategies that boost ROI.

1. Check and recheck the value of the property. There are many tools on the market that can help you identify what any given property is worth. Don’t rely on a single method. Run comparative stats and bring out value experts if need be; appraisers, contractors, and other rehabbers can help you detect issues that decrease property value, so you don’t wind up paying more than the property is worth. Don’t be afraid to use information you find out to negotiate a lower price and be prepared to walk away if you aren’t going to get at least 20% return. Obviously, 25% is better and you’re golden if you hit 30%, but don’t accept those numbers at face value. Always recheck with multiple methods.

2. Research the neighborhood well. All too often, rehabbers get caught up in what makes a house look amazing and lose sight of what will bring profit. Things like paint and fresh fixtures are usually good bets, but granite countertops or a luxury bath remodel? Maybe not. Learn as much as you can about the features and upgrades in other homes in the area, so that you’re keeping your upgrades on par with others. If you go too high-end, you won’t get ROI.

3. Don’t pay more than you have to for funding. There are Texas Hard Money Loans for every circumstance, and each lender will have a different pricing scheme. Obviously, the less you pay to borrow, the more money you’ll have in your pocket at the end of the day.

Work with a Broker Who’s as Eager as You Are

A motivated broker is going to bring a unique blend to your project. First and foremost, he’s going to shoot straight with you. If there’s a problem with anything you’re bringing to the table, he’s going to tell you. That may sound counter-intuitive because he makes money on the deal too, but the reality is, those who work in Texas Hard Money Loans want to work with the same clients repeatedly. Not only will he be transparent, but he’s going to work hard to find the best rates possible for you because he knows you’re going to be successful and wants to be involved in your future deals. When you’re working with the right person, it’s never about just this one property. It’s about building a relationship.

When you work with a team that’s the real deal, you’ll all be prosperous.

At the end of the day, your Texas Hard Money Loans will go further if you surround yourself with a solid team. Learn how to evaluate who’s really in it for the long-haul. That includes your finance team and anyone doing work on the property, from your contractor through tradesmen, and be sure to treat them like the integral partners they are, so they’re motivated to continue increasing your returns.

Why You Need to Beware of the 90-Day Rule with Texas Hard Money Loans

Texas Hard Money Loans are a great way to fund a fix-and-flips, but if you’re just getting into investing, it’s important to understand legal guidelines that can impact the sale of the property. One such example is the FHA’s 90-day rule, which prevents buyers from using an FHA loan if you haven’t owned the property for at least 90 days.

Lending options differ depending on what you intend to do with a home, which is one of the reasons why Texas Hard Money Loans are so popular with real estate investors. If you’re purchasing a home to live in, you’ll have a wealth of options to choose from. If you’re purchasing it for a fix-and-flip project, some of those options vaporize. One example of this is an FHA loan. Although you can’t get one as an investor because the property won’t be your primary residence (and you probably wouldn’t want to, but more on that later), those who wish to purchase your rehab might, and so FHA guidelines can impact you regardless.

The Federal Housing Administration (FHA) doesn’t lend money to home buyers, but does insure mortgages through various lenders. They essentially promise the lender that if the homeowner doesn’t make good on their obligations, the lender won’t get stuck with the bill. Because of their programs, even people with poor credit or minimal money for a down payment can qualify for a mortgage. In many cases, this puts homeownership within reach for a broader group of people; those who might not have otherwise been able to get into a home. Typically referred to as the “90-day rule,” the terms state “A property that is being resold 90 days or fewer following the sellers date of acquisition is not eligible for an FHA-insured mortgage.”

FHA Regulations Can Stop People from Buying, But They Don’t Stop You from Selling

The regulations are often referred to as anti-flipping rules, but don’t take this to mean the FHA sees you as the enemy. What they’re trying to avoid is having people purchase homes, do nothing to them, and then turn around and sell them for twice as much a month or so later. However, anyone who resells a property is considered a flipper, and those who invest sweat equity or make a home move-in ready for a family, particularly a distressed property, are doing something good for everyone. Moreover, if you’re using Texas Hard Money Loans to flip, these guidelines will not impact your purchase and they cannot prevent you from selling, even a week after you purchase, but they can stop someone from buying your rehab if they’re intending to use an FHA mortgage.

Assess the potential for FHA buyers and adopt an appropriate strategy to avoid the pitfalls.

FHA mortgages have a place, simply because they do help people, especially those with low and modest incomes. However, homebuyers pay for this privilege. They pay a big portion up front, and then have insurance payments added onto their mortgage each month. Depending on the amount borrowed, it could be hundreds of dollars each month. In other words, if you’re working in a high-income area, you can probably sell your flip without worry about someone needing FHA financing, but if you’re working in a low or middle-income area, you need to plan ahead for this if you anticipated selling your rehab in less than 90 days. You can use Texas Hard Money Loans to span much longer than this, but you’ll want to budget accordingly and make sure you can cover your payments while you wait for the 90-day period to end.

Wednesday, March 6, 2019

Top 3 Work-at-Home Jobs Texas Hard Money Lenders Can Help You Land in 2019

If you’ve always wanted to work from home, 2019 can be the year you make your dreams come true by creating your own business. Learn what types of businesses Texas Hard Money Lenders are funding now.

1. Fix-and-Flips: If you’ve seen home rehab shows on TV, you’re already familiar with this concept and Texas Hard Money Lenders have been funding these types of deals for decades. Although the shows don’t go in-depth with the amount of work involved and a lot of stuff happens behind-the-scenes, fix-and-flips are a lucrative business for anyone with experience in home repair, real estate, project management, or related industries. People address it differently depending on their goals; whether they’d like to totally gut a distressed property or make minor cosmetic changes, and there are various strategies, such as turning it around quickly or renting it out for a steady income stream. Explore the options and decide which is right for your preferences and area of expertise.

2. Airbnb: Although short-term rentals started out as nothing more than people offering up space in their homes or renting out a vacation home when not in use, it’s big business now. This can be done in conjunction with a home rehab project or on its own. Our previous blogs go more in depth on this, but the average person renting a second home brings in more than $20,000 per year doing so. That’s pretty lucrative as a side gig, but imagine the possibilities of running two or more!

3. Cannabis: With states moving to legalize marijuana, wholesale cultivators are in great demand. The field is wide open. Pick up a plot of land and start an outdoor grow operation or invest a bit more to have additional crops and product that commands premium prices.

These Jobs are the Real Deal- Anyone Can Make Money with Them!

What’s truly amazing is that anyone can do these jobs. You don’t need to have a college education to be your own boss and earn serious cash, either in your free time or as a full-time career. Best of all, you don’t need to have a whole lot of cash stashed away to get started either— Texas Hard Money Lenders can get you the startup funds you need.

Weigh the pros and cons to find out if starting a home business is right for you.

Obviously, you’ll need to have an entrepreneurial mindset, do your homework before you jump in, and have some basic business skills in order to be successful as your own boss. Moreover, there are many ways to fund your startup. Working with Texas Hard Money Lenders tends to be best for those who can’t get funding through a bank due to the nature of their business or because they have rotten credit, and when someone needs to move quickly to get a good deal on real estate. However, if you’ve got a good mindset and can do the legwork involved in running a profitable business, 2019 can be the year you make it happen.

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.