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

Monday, April 8, 2019

Reality TV is Not Reality: Some Advice on Texas Fix and Flip Loans

Nielsen ratings rank HGTV as the second most watched cable network on TV. These well-produced shows might make flipping look like a path to easy profits. But, take out Texas Fix and Flip Loans with reality TV in mind and your first flip will likely be a flop.

Producers on these shows know that the majority of their audience only cares about design and decoration, but flipping is about investing and not designing. If you want to get into the flipping business, you can't ignore these facts:

• It takes time to find the right deal.

• Financing is limited and carefully structured.

• If a house doesn’t sell in time, it could be a disaster.

HGTV programs devote about three minutes to finding a property to flip and the conversation usually goes as follows:

"Hey, babe. Found a great place, in that neighborhood."

Usually his better half is in some distant office, with a laptop in front of her. She gives a cursory glance to some comps. “Well that's great! We could make this much," she says off-hand.

Then they close, while counting out the cost of repairs on fewer than five fingers. Their biggest obstacle seems to be choosing that perfect white subway tile for the kitchen.

Texas Fix and Flip Loans are given out in draws, so unexpected expenses can put your entire project in danger.

After the happy couples on these shows walk into a perfect deal, money never seems to be a big concern. They seem to have hundreds of thousands of dollars stashed under their mattresses.

About 10 minutes into the program, an issue will invariably pop up that will require an additional outlay of thousands more dollars. Somehow, this is no big deal.

"Hey, babe, there’s some insert problem here, and it is going to cost X amount of money to fix it." To which their better half will invariably will reply, "Oh really? Well, that sucks, but I guess we have to do it. Alright, well, spend the money."

Texas Fix and Flip Loans entail balloon payments, so there’s a lot at stake house doesn’t sell in time

The last five minutes or so of these programs are full of wide-eyed buyers, ogling the impressive rehab work, and then: "We got an offer! Here’s how much we made," and then the credits roll. All usually turns out right for the smiling couples on these programs.

If these programs more closely followed reality they might look something like this:

• Five minutes consisting of months of time-lapsed footage with the frustrated flippers groaning and grunting, bitterly sipping coffee whilst clicking through the online listings. Because, in reality finding the right deal takes time.

• Five minutes consisting of actual rehab work, and when that unexpected issue pops up, there'd be a lot more at stake. Fix and flip financing is based on draws. You get a certain amount of money each month, and if you go over budget on a given month, you might not have enough money to finish your project. So we'd have another five minutes with the couple on the phone asking their lender for some extra money that month.

• Another 5 minutes devoted to selling the house, but once again there'd be a lot more at stake. Financing flips usually entails paying back the entire loan balance after a few months. If the house doesn't sell in short order, you will have to pay back the entire loan out of pocket, and who has a couple hundred thousand dollars just lying around?

With all the tension and looming risk of failure, the true reality of flips might be more interesting than what you see on reality television.

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 and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Texas Fix and Flip Loans: Properties You Should Never Finance

Don't get overexcited if you spot an online listing you'd like to flip and the profit projections look great on paper. There are specific properties that might never qualify for Texas Fix and Flip Loans, and even if they are eligible, there are certain deals you should avoid.

When it comes to flips, you want properties that will qualify for financing that is unless you've got hundreds of thousands stuffed under your mattress, and above all, you want properties that will sell and sell quickly.

If you can't flip a house within a few months, you could be on the hook for a massive balloon payment, so first, let us talk about homes that don't sell or even if they do sell they sell at a steep discount.

Properties you shouldn't take Texas Fix and Flip Loans out for, because they don't sell:

• Houses in high crime areas: Most buyers might want to take Fido for a walk after their evening meal. Before purchasing a house to flip, drive to the neighborhood in the late evening and ask yourself “Would I feel comfortable walking around here after dark?” If the answer is no, it’s a deal you should avoid.

• Houses in high noise areas: Buyers have alarm clocks for a reason. No one wants to be roused from sound slumber by a blaring cargo train, the horn of a semi, or the roar of an approaching jet, so avoid flipping homes in high noise areas.

Even though these houses are bad deals, you'd likely still be able to get a loan for them. But there are some houses that you shouldn't bother with because most lenders avoid them like the plague.

Don't risk applying for fix and lip loans on the following:

• Houses with a history of meth manufacture: If Walter White previously inhabited your home, lenders aren't going to touch it. The cost of environmental remediation is not an expense lenders want to cover.

• Houses with extensive mold or fire damage: In any flip, you might expect some damage, but if the cost of resolving the issue exceeds a couple thousand dollars, this is an expense most lenders don't want to cover.

• Houses with severe roof or foundation issues: Re-pouring a foundation or putting a new roof on would be a considerable expense that you will need to take care of before you can even begin any rehab work. Most lenders aren't interested in taking on such a cost.

• Houses that have been pillaged: In the rehab business, you can’t expect properties to be in mint condition. However, if you notice that someone has a stripped a house of its wiring and copper pipes, most lenders won't consider the cost of fixing the property to be worthwhile.

Notice that in the above cases, you could pay for these costs yourself, and you might still be able to get a loan. You could flip a house in a high crime area, next to the airport, or that has been used to make meth. Yes, you could flip such houses, but do you want to?

If a flip has any of the above issues, you should move on. Trust that there is a better deal out there.

How to Get Colorado Hard Money Loans for Medical Marijuana Dispensaries

Medical marijuana programs are now legalized in a number of states in the United States. Many times, Colorado Hard Money Loans are the best option to fund dispensaries participating in these programs.

In his youth, Jerry served in the military completing a Gulf War tour and earning a purple heart. In the early-1990s, he returned to his home in California with post-traumatic stress disorder and chronic back pain. For many years he suffered from these conditions and struggled finding a form of consistent relief. By the mid-1990s, there were legal changes to cannabis, which came to Jerry’s attention. Medical Marijuana was soon approved under Proposition 215—The Compassionate Use Act. According to the new proposition, Jerry learned that, with a physician’s approval, he could use medicinal cannabis to alleviate his PTSD and chronic back pain.

Jerry interested to see if medicinal cannabis could help his post-war conditions. After some time had passed and the proposition had taken effect, he talked to a physician and got approval to use medicinal cannabis. The treatment worked. Over time, Jerry experienced reduced anxiety, less nightmares, and greater sleeping intervals. The ability to sleep longer, and the lessening or stress and anxiety, helped him feel more relaxed, well-rested, and calmer.

While he had not disclosed his medicinal use of cannabis to those close to him, many friends and family members began to take note of Jerry being more relaxed, sociable, and friendly. Jerry felt better and less burdened.

Get Colorado Hard Money Loans for Medical Marijuana

Over time, Jerry decided he would like to help others struggling with chronic psychological or physical pain. Jerry decided to make a non-profit organization through the California Department of Public Health’s Medical Marijuana Program (MMP). With a knowledge of the system and various connections with physicians, Jerry applied to become a care provider in accordance with state law. The only problem was funding for his non-profit. Some friends of his suggested Colorado Hard Money Loans.

“While Jerry had accrued a significant amount of savings, he relied on Colorado Hard Money Loans to acquire the non-profit instructor he needed to participate in California’s Medical Marijuana Program.”

While Jerry had accrued a significant amount of savings in the past, he relied on Colorado Hard Money Loans to acquire the non-profit instructor he needed to participate in California’s Medical Marijuana Program. Colorado Hard Money Loans allowed Jerry to establish himself and help other individuals suffering or in need of medical help. His clinic attends to a community of thousands of patients

Sunday, April 7, 2019

Find Colorado Private Money Lenders for Flips

Colorado Private Money Lenders are here to help you eke out a living through profitable investment. Talk to your private money broker at Level 4 Funding for more information.

John Meredith was a car salesman. He worked 10 to 12 hours a day talking to the interested customers in his small town. Every morning, he woke up to the Arizona sun gently entering his window. Every morning, he ate the same breakfast comprised of three eggs. With his shoes covered in a fresh coat of polish and his shirt ironed, every morning he’d make the same 20-minute drive to work.

Opposed to the shady salesman archetype, John had a very calm, open, and helpful demeanor. His method of salesmanship was showing people the facts, the book values, the information… Transparency. Negotiation. Closure. Trust. The sale. Return customers, asking for him. With 4 years in the business, he had started to see many return customers. He’d watch them stroll onto the lot from the sales building’s window. The problem with the building was that it faced the east causing the mid-morning sun to glare his view. With a customer on the lot, he would stroll out, greet, question, and calmly guide. Calmly address concerns, objections, anger, bliss. Selling was chaos. It was an infinite cycle of addressing objection and responding with fact. Responding with reason. Coming out of the void of uncertainty with answers, assurance, and mutual benefit.

John sold cars by calming the horde of frustrated clients. After closing a deal, he would slowly move to the window and watch for another customer. Watch the sun cook the concrete and the blacktop. John had a friend who wanted to flip a house. His name was Jimmy Anderson. Knowing a few Colorado Private Money Lenders in the area, Jimmy was interested in taking out a loan to flip a house. The problem was that the Colorado Private Money Lenders would only fund based on a 60% of the loan-to-value amount. Meaning, to flip he needed John to match his investment amount.

Earn More Money Today Using Colorado Private Money Lenders

Jimmy had experience flipping, John had seen his success in flipping homes and was interested in investing. Within a week, they had received funds from local Colorado Private Money Lenders and had acquired a promising piece of property. What followed was not the easiest project. It required many hours after work and weekends. Many parts of the flip went well. Other parts were difficult: lackluster contractors, unexpected property damage, city laws, bureaucratic appeasement, marketing, sales, commissions, interest rates.

Find Colorado Private Money Lenders for your ventures. Talk to your private money broker today at level for funding to find the loan type, interest rate, and terms that are right for you.

However, with everything said and done, their side hustle earned an extra dollar and the effort in the end seemed worthwhile, a means to a monetary end. All of this was possible thanks to John’s friend’s insight and the funds from Colorado Private Money Lenders. Thanks to John and Jimmie’s private money broker at Level 4 Funding this opportunity was made possible.

Buy a New Home Before Selling - Get a Colorado Bridge Loan

2018 has brought with it an accelerated real estate industry: an upward trend in the market and a multitude of eager buyers at hand. The result has been a shortage of available homes across the board, a pressing demand for available homes, an increased value of rental properties, and a burgeoning demand for construction. Even despite the slowing growth in housing prices and the difficulties of mounting federal interest rates, the housing market remains strong and home equity has risen substantially. These elements are enticing many home owners to sell their current properties.

Of the many individuals who are eager to sell there home, there exists a subcategory of sellers who are interested in acquiring a new home before their old home sells, otherwise known as bridging or applying for a Colorado Bridge Loan. There are many reasons why a Colorado Bridge Loan may be useful. Selling a home in order to relocate for work purposes is a common cause. New job opportunities await, and the hypothetically ideal property is found in a new area. Why wait? Perhaps, while in the prosses of selling, an individual encounters a home at auction. Perhaps, they encounter a home near work, school, the grocery store, the yoga studio, etc. The perfect home in the perfect place, at the right price, and at possibly at the right time.

A Colorado Bridge Loan can help you capitalize on opportunity. It lets you establish financing to acquire a new home without selling the older home in a matter of days, possibly less. This is great news, for many who would not be able to acquire the right property—should they be left to conventional lending institutions and their stringent underwriting processes. The heart of the matter is this: conventional lenders are regulated by the mandates of the Fed. They take months to finance and are difficult to appease. A Colorado Bridge Loan is fast and is used to acquire property in the immediate future until conventional lenders come along in the future at lower rates.

Seize Market Opportunity with a Colorado Bridge Loan

A Colorado Bridge Loan is a short-term loan usually ranging anywhere from 3 to 24 months. These types of loans require possessing equity in a home that is for sell. Interest rates on a Colorado Bridge Loan may start as low as 7.99% an have up to 90% loan-to-value.

“Don’t wait! Talk to your broker at Level 4 Funding for a Colorado Bridge Loan today.”

Talk to your hard money broker at Level 4 Funding to find the Colorado Bridge Loan and interest rate that is right for you. Take advantage of the opportunities of purchasing a home in the neighborhood that is right for you. Level 4 Funding has history of helping buyers acquire the assets they need when they need them.

Make More Money with Colorado Rental Property Loans: Rental Trends 2019

Overall, the experts claim that now is a good time to invest in the rental market. For many, investment in rental property requires a lending source. Conventional lenders for many are out of the question or incapable of meeting the demand of real estate investment. Hard money is the favored alternative for real estate investors. Hard money Colorado rental property loans are able to help you take advantage of the rental market.

Trends in rental property investment:

Many people are renting rather than purchasing homes: Millennials are a substantial cause of the rise in renting. Many look back to the Great Recession as the cause. The Great Recession has led to a greater cost of tuition leading to greater debt in order to attend college. These debts along with an economy with less employment opportunities as past generations have delayed millennials from making decisions such as home ownership. With less millennials purchasing homes, the renting rates have seen a gradual rise over the past several years. The younger generation is not the only generation that is renting. Recent trends suggest that the retired and elderly are more likely to rent. Here are some of the reasons for the renting trend. First, downsizing. Many are finding that they no longer need the room like they once did. Aside from this, relocating to be closer to family members as well as selling property to avoid maintenance.

Rent is rising faster than income: With a steady rise in rental demand, the prices of rental properties are rising as well. While, this is not too surprising, it has become a challenge for many, especially since “half of all renters pay more than 30 percent of their income” according to curbed.com.

Shortage of homes on the market: A shortage of homes on the market has led to a rise in the price of housing. Due to this scenario, many households are renting instead of buying a home. The demand for homes along with the demand for rentals are simultaneously on the rise. While this is the general case in the US, it should be noted that in certain areas, newer homes are reducing the cost of rent, despite many years of upward movement. This is because in certain areas homes are being developed at a fast enough pace enticing home ownership over renting.

Increase Earning Potential with Colorado rental property loans

Strong rental market.

“Apply for Colorado rental property loans today.”

For more information on Colorado rental property loans, talk to your broker at Level 4 Funding. Level 4 Funding has the direct hard money private lending options at competitive rates. Having funded over $40,000,000 Level 4 Funding has the experience and the expertise to meet your real estate lending needs. Apply for Colorado rental property loans today.