Historically, commercial Texas Hard Money Lenders have been the go-to funding sources for those in real estate investing. Newcomers to the field sometimes struggle to get a plan off the ground due to funding shortfalls, but if you understand why they fail, you’ll avoid the same errors.
If you’re doing your homework, you’ll probably see lots of people asking about commercial Texas Hard Money Lenders who will fund 100% of a project. This is a newcomer error. Asking for 100% is asking someone to assume total risk for your project, and that rarely happens, even if you’ve got loads of experience and already have already earned serious money for the people who fund your deals. If you’re short on cash and just getting started, focus on purchasing a property for less than what it’s worth. That will give you more wiggle room with the budget and funding.
Another big mistake is not working with experienced professionals. As a newcomer, it’s tough to know what everything will cost, what permits will be needed, what the property value is now, and how much you can safely increase it without making it overpriced for the neighborhood. Plus, there’s always a chance you’ll overlook some kind of damage that can tank your budget and set you behind schedule. Always build up your team first. Not only will it make you more successful, but you’ll look like a more appealing borrower too. Consider people at every phase of the plan, from contractors through appraisers and brokers.
Lastly, many fail to find a niche. You can’t be an expert on everything, nor can your funding team. Find an area you really enjoy working in, such as single-family homes, multi-family properties, distressed properties, historic homes, and so forth. Become the expert in that area. Again, it will make you more successful and will help you network, which is essential when you’re searching for new projects or need help with one. This is also looked upon favorably in the lending niche, particularly if you can pair up with a lending team that shares your affinity.
Focus on Creating a Win-Win Solution for Everyone
One other tactic to try is to put yourself in the mindset of commercial Texas Hard Money Lenders. Look at yourself and your plans with a very critical eye. Try to poke holes in your own plan. Are the profit margins too small? Is the budget or timeline too tight? Is the neighborhood you’re considering less in demand than others? Is the team involved lacking in experience? Once you’ve made a list of all potential issues, find ways to overcome them, so your deal is a win-win for everyone involved.
Work with an experienced broker who can help you find the right funding with the best terms.
On a final note, you’ll have greater success with commercial Texas Hard Money Lenders when you work with an experienced broker. A seasoned broker will listen to your plans and help you polish them up before getting you matched up with someone who is excited to fund your deal and finding the best possible terms, so you start your project off ahead of the curve.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
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.