Showing posts with label Fix and Flip Homes. Show all posts

Wednesday, July 18, 2018

Here’s What it Takes to Be a Rebel Rehabber/ Fix & Flip Pro

Curious what it takes to be a rebel rehabber? At Level 4 Funding, we have the pleasure of helping some amazing people who work in the fix and flip business and sometimes they’re kind enough to share their stories with us. We recently had the pleasure of speaking with Yvette Stevens of Miami Beach Fix & Flip, and she not only gave us her personal story, but some epic tips for those of you who are interested in becoming a house flipper as well.

Yvette Always had a Fascination with Finance and Homes

While she may not have known it at the time, Yvette was being primed for the fix and flip business from an early age. Growing up in Chicago, she often visited her father’s construction sites and fell in love. It wasn’t long before she was begging her parents to take her on tours of the city, so she could soak up the architecture and imagine what it would be like to create similar homes. While other kids were nagging their parents for spending cash, Yvette was happily balancing her mother’s checkbook and paying the household bills. It’s no surprise, then, that when it was time for Yvette to choose a career, she jumped headfirst into lending.

One of Yvette’s current projects: completed stock plan, a 2,721-square-foot beauty

She Decided to Kiss the Corporate Ceiling Goodbye

Although Yvette loved many aspects of her career, particularly reading the plans that came in with loan applications, she wasn’t content to sit still. “Corporate America has a ceiling,” she says, “especially for women.” She rebelled. Using her expertise in both construction and lending, Yvette began transitioning into development in 2005, building homes from the ground up.

The Market Crash Left Her with “Beans”

“Real estate goes in ten-year cycles,” she says. The money, mortgages, real estate, and politics are all tied together, resulting in regular shifts. This, she says, is also the cause of the “steak and beans” lending cycle. During lean times, Yvette has been able to refocus on her career in finance, while searching for development opportunities when the market has been good. Like many others, the crash of 2008 hit Yvette hard. She was working on building an entire subdivision that September, but she managed to climb back up out of it and now does fix-and-flip work too.

When Choosing Fix-and-Flip Properties, Yvette Goes for a Blank Slate

Every fix-and-flip pro has a specialty. For Yvette, her ideal property is one she can tear down to the studs, simply because she loves having a blank slate to work with. “The uglier they are, the more we like them,” she says. Her current project is an older home in a historic district, which comes with rigid requirements for what can be done to the outside of the home, but she doesn’t mind at all. “Construction feeds my creative side,” she adds. Her primary focus is Florida these days, but Yvette researches various markets and finds new opportunities all over the country.

Yvette Offers a Wealth of Advice for Potential Fix-and-Flippers

“It’s not that easy,” she says. “People think they’re going to jump in and make money,” but there’s so much more involved. You have to “live, breathe, and eat real estate.”

“You’ve gotta have some cash.” Even if you get 100%, you’ll need to have money set aside for things like closing and emergencies.

“Look at it like a line of credit.” Lenders look for 20% verified liquid assets in order to ensure the borrower can finish the project. “Be prepared. Everybody wants something for nothing these days, but it just doesn’t work that way.”

“Learn, learn, learn before you earn.” Research your market; don’t jump into it. Get a good understanding of how credit and assets work. Learn about the business and concentrate on a market. Yvette’s a fan of BiggerPockets.com and points out that newcomers may benefit from the free information and tools the site offers, like fix-and-flip calculators.

“Make a lot of offers. Keep throwing them up against the wall until one sticks.” Resilience is paramount because you’ll get a lot of rejections before you find one that’s really a great deal you can work with.

“Love what you do. If it’s not fun, you’re not going to be successful.” There will be a lot of ups and downs when you do home rehabs. Enjoying what you do will keep you motivated and on your toes, even when things are difficult.

Learn More

If you’d like to connect with Yvette, head over to her LinkedIn profile and say “Hello.” We’ll be covering the stories of other Level 4 Funding clients as well, so pop back over soon for the next installment. You can also reach out to us directly if you’re interested in financing your next fix-and-flip with a hard money loan.

Wednesday, July 11, 2018

Dallas Texas Hard Money Loans

Looking for Private Hard Money Loans in Dallas Texas for you real estate investment, development or need funding fast.

Level 4 Funding LLC is an Texas top Hard Money Lender Commercial Lenders for Dallas, Houston, Austin.

We are brokers and can find you the best possible hard money loans

for your Commercial, Construction,

Hard Money Loan in Dallas Texas.

Yes we work state wide and have years of experience as Private Hard Money Lender for Dallas Texas. If you need a quick decision and a quick loan, we can deliver Low Rates and Great Terms on Private Hard Money.

We look for the best possible deal on rate and terms and

will provide you an underwriting decision

within 24 hours.

Level 4 Funding provides hard money loans to real estate investors and developers who need Hard Money Loan quickly. We are a direct private money lender – this term is synonymous with “hard money lender” – hard money broker who looks at applications and finds an outside lender to provide funds for the Private Loan.

We lend statewide and have extensive experience in Dallas Texas, Austin Texas and Houston Texas.

We can make decisions on your loan applications quickly and we underwrite loans in-house, cutting out the middleman and helping us to minimize the time and processing costs by creating as few steps in the Hard Money Loan Application process. We can provide Hard Money Loans in Dallas for Commercial, Residential, Office Multi Family, Warehouse, Storage Complex, Student Housing, Raw Land, Construction. We offer:

· Investment Property Financing for Commercial and Residential

· Funding in as little as 24 hours

· Rates as low as 7.9%* (8.4% APR)

· No upfront prepaid fees in advance

· Terms from 6-60 months*

· No pre-payment penalties, no back-end points, no hidden fees*

As an asset-based lender, we are mostly concerned with the real estate used for the Hard Money Loan. As an Dallas Texas -based lender, we work with Texas real estate investors in Dallas, Houston, Austin and other Texas markets, making us ideal to work with thanks to our understanding of the state’s market as well as being easy to reach during hours that work for you.

Level 4 Funding Has the Experience in Hard Money Loans in Dallas Texas to Help You Today

We look for the best deal for you. Our team is built to see the potential in a property and provide a financing solution that can bring value to your project and save you profit! We have taken the time and care to understand Dallas Texas Market unique real estate market to ensure that we can create a customized Private Hard Money Loan fit for any property or project in the area.

When Your Loan Can’t Wait and Need a Dallas Texas Private Hard Money Loans

Level 4 Funding has assisted with financing a variety of investment properties. we have the experience and knowledge to get you to the next stage of your project from purchasing a property to either hold onto while it appreciates in value or to turn it into a monthly cash flow asset in your portfolio, to fix and flips, to full scale residential subdivision construction, We make asset-based lending a quick, simple and easy-to-apply-for process.

If you’re looking for a private loan, don’t wait –

start you application today.

We look forward to working with you.

We do them all! Give us a quick call to discuss your situation and your project. We can provide you with an answer over the phone with no obligation or pre-paid fees in advance. If we can help we will, if not we can tell you the course of action you need to take to get your project funded. Yes we do them all, give us a call today for a Private Hard Money Lender for AZ, CA, CO, FL, ID, OR TX and WA! Give me a call at 623-582-4444 or for Texas Hard Money Loans call us at 512-516-1177.

Technorati Tags: hard money lender,hard money loans california,hard money texas

Saturday, June 16, 2018

Getting into Fix & Flips? Read This Appraiser’s Advice First

When people hear about Level 4 Funding and the work we do, they often wonder exactly how people put hard money loans to use and create real value with them. Oftentimes, those we help work in the “fix-and-flip” business, rehabbing houses. Of course, the next flurry of questions usually surrounds who does that and how they make it work. We’ve been lucky enough to get a few professional home rehabbers to open up a bit about their work and are highlighting their stories. Jason Maze of Maze Enterprise and Amazing Appraisals was kind enough to give us some insights.

Jason Began as an Appraiser

Working in real estate appraisals, Jason routinely helps home buyers and sellers, as well as other parties such as lawyers and accountants, determine the value of a home. While this is often done in advance of a sale, appraisals are routinely performed anytime knowing the value of a property is beneficial, such as during a divorce or while handling estate planning. Over the years, he really got to know the numbers and specific areas. When the market crashed in 2008, he noticed an interesting trend. Canadians were heading into the area and buying en masse. “We can do that,” he decided. With his experience in value and his wife Jennifer’s lifelong affinity for design, the two ventured into the fix-and-flip business.

He Offers Some Tips for Those Getting into Home Rehabs

We asked Jason what advice he’d give someone who was considering getting into the business. “Go for it,” he says. “Make sure you have crunched your numbers. Buy low, sell low.” Although Jason may have the upper hand in valuation because he’s been in the field for decades and now does about ten flips per year on top of it, he says anyone can get a better idea of the numbers by hiring an appraiser before they purchase a property or prior to selling one.

There are Highs and Lows in the Fix-and-Flip Business

So far, Jason says his and Jennifer’s most rewarding project has been a historic home. With Jennifer’s designs and Jason’s fiscal sense, the outcome was great. However, the icing on the cake was when HGTV contacted the couple and asked about airing it on a show. This particular property, aside from celebrity status, was a bit of a rarity for the duo, as they typically aim for “newer” homes, or those built in the 1970s through now. Jason says they “learned their lesson” about dealing with older homes the hard way by purchasing one sight unseen. When they finally got their hands on it, they realized it was built with mud and straw, then covered in plaster, as opposed to modern building materials. This, he adds, isn’t uncommon for the period. Many homes throughout the southwestern US, particularly in the Phoenix area, were built this way because it’s what the earliest residents had on hand and helped make the desert heat more bearable. Still, it was an unexpected surprise they had to overcome and added a few extra challenges to the rehab.

Jason and Jennifer Have Big Plans

Despite the occasional blip, the fix-and-flip business has been good to the Maze family. The pair does about two homes at a time, continuously adding to their impressive portfolio. This still allows plenty of time for Jason to grow his appraisal business. Jennifer, on the other hand, has been balancing managing the design of their rehab properties with a nursing career, which she may soon leave behind in favor of branching out on her own offering design services to others. Of course, the family is still allowing plenty of time for fun and new adventures together as well. Chat with Jason About Appraisals or Get Info on a Fix & Flip Loan.

If you’d like to chat with Jason about his appraisal services, go to Amazing-Appraisals.com.

You can also visit Level4Funding.com to learn more about loans for your next fix-and-flip project and even begin the application process right on the site. We’ll be sharing more stories from home rehabbers like Jason too, so pop back in soon for the next installment.

Thursday, May 29, 2014

Real Estate Fix and Flip Guide Lines - Keys to Success.

Fix and Flip Seminar

Keys to Fix and Flip

If you want to make money, you need a plan. Determine where you are going to invest and what type of property you are going to invest in. There are three types of projects:

1. Fluff and Puff

You just have to clean it up and to some staging

2. Spray and Spread

New Paint and Carpet

3. Rehab remodel

Going to have to get the hammer out and do some major repairs

Determine the profit before you purchase – work backwards.

Sales price less costs is your profit.

Sales Price

-Purchase Price

-Repair Holding Costs

-Other Costs

Net Profit

Repair and Holding Costs

§ Acquisition

· Purchase Price

· Back Taxes and other liens

· HOA Transfer Fees

· New Keys

· Bid or Real Estate Fees

· Closing Escrow Costs

§ Repairs

· Contractor or do it yourself

· Appliances – Missing need new

§ Holding

· Cost of capital to hold

· Payments on loan

· Utilities – Electric, Gas, Water/Sewer

· Insurance

· Maintenance – Keep the grass cut to sell

§ Selling

· Real Estate Commissions

· Title closing costs

· Marketing Plans

§ Administration

· Bookkeeping accounting

· Other non-related expenses

Have a good team

§ Contractors/other to do the work

§ Suppliers

§ Real Estate Agent

§ Hard Money Lenders

§ Insurance agents

Major Keys to Success

v Get a real estate license.

v Have cash money to put into the project.

v Keep your expectations realistic.

v Don’t do a project unless there is a clear profit potential.

v Do your project through an LLC.

v Don’t buy radioactive materials.

A hard money loan can be a vital tool for real estate investors looking to maximize their profits, complete more investment projects and minimize the amount of capital needed to accomplish their investment goals.

Seasoned real estate investors know that using a hard money lender is the faster and easier way to fund a real estate investment project when compared to relying on traditional financiers like banks; and asset-based hard money lenders are much more likely than banks to fund real estate construction projects and fix & flip projects, because bank regulators see construction loans as too risky for their heavily regulated portfolios.

Most hard money lenders make loans at interest rates around 12% and charge anywhere from 3 – 6 points. These higher interest rates often make less experienced investors gun-shy, but the reality is, in a spec home or fix & flip scenario, a short term hard money loan at 12% or even 13% can generate much more profit for the principal investor than an equity partnership in most cases.

Investing in real estate is an art, and there are many tips, tricks and strategies that successful investors employ to get their deals done and cash flowing.

Here are some essentials of investing with a hard money loan:

1. If you want a fast close, you need plans

This happens all the time: An inexperienced investor puts a property under contract to close in 2 weeks. The investor contacts a hard money lender to fund the project knowing that, next to cash, hard money is that fastest way to close a deal, BUT the investor has no plans, no specs and no budget.

Lesson: Without plans, an appraisal can’t be ordered, or even a BPO (Broker Price Opinion). Without an appraisal or BPO, the lender can’t verify the ARV (After Repaired Value) of the project. Without an accurate ARV, the lender can’t make the loan.

2. Don’t lie

It’s common for borrowers to try to make themselves look “more qualified” for a loan than they may actually be – but what borrowers should realize is that hard money lenders are much more concerned with the value of the asset than they are with your personal financial history. Most hard money lenders don’t even check credit scores. However, if you fail to submit the financial information the lender asks for, just because it’s not as pristine as you think it should be, it looks like you are going out of your way to hide something from the lender, which reflects worse on you than subpar financials.

Lesson: The lender wants to make your loan! Be helpful and transparent so that the lender can work with you to resolve any questions in your financial history. Don’t sabotage yourself by lying.

3. Expect to have “skin in the game”

Many hard money lenders market their loans as having the potential to fund an investment at 100% LTC (Loan-To-Cost), meaning a borrower won’t have to put a dime into the project. Although there are some scenarios where this is true, it’s very rare, especially in hot markets like Austin, Houston or Dallas-Fort Worth, where the acquisition of quality investment properties is über competitive.

Lesson: When using a hard money loan, you won’t need to sink a ton of cash into the deal, but be prepared to put some skin in the game for plans, engineering, an appraisal, an underwriting /loan commitment fee and, more than likely, lender points to close the loan.

4. Do your project through an LLC

Limited liability companies, (LLCs) protect their owners and members from liabilities that present themselves during a real estate investment, and have an ideal structure for income tax purposes. LLC owners are only liable for debts of the LLC up to the amount of the member’s investment in the LLC. So if an investor starts an LLC with a $20,000 investment, and the LLC assumes a debt of $200,000 to do fund a real estate project, the LLC’s owner is only liable for $20,000 of the LLC’s obligations. LLCs also subject their members to only one level of income tax on the profits and gains of its ventures. As “pass-through entities” an LLC is not itself subject to income tax – only the members are taxed on the profits and gains from the LLC, based on percentage ownership.

Lesson: Doing business through an LLC limits personal financial liability, and avoids the risk of double taxation on profits and gains.

In the real estate investment world, timing is everything. When the iron is hot, investors need to have the ability to strike and strike fast. With the right preparation, a hard money lender can close a loan in 2 weeks or less, and by following the aforementioned tips, you’ll minimize your time waiting for funding and maximize your profit potential.

ArizonaHard Money Arizona Mortgage Broker

Dennis Dahlberg
Broker/RI/CEO/MLO
Setabay
Tel: (623) 582-4444 | Fax: (888) 279-6917
www.setabay.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027