How to Get the Real Deal When It Comes to 100 Percent Texas Fix and Flip Loans

Getting 100 percent Texas Hard Money Loans for flips might seem as difficult as catching a unicorn, but in reality it isn’t. Getting such a deal just requires a little out of the box thinking and some negotiation on your part.

If a lender is offering 100 percent financing, you have to ask, 100 percent financing for what? Few if any lenders want to take on 100 percent of the risk by offering a true no money down deals up front. They will either fully cover the cost of purchasing a property, or rehabbing it, but not both.

You want both these costs covered, so what can you do so you can pay nothing for your next flip?

To cover both the cost of purchasing and rehab you need to work within the terms initially offered by your lender.

Simple tactics to get “real,” 100 percent Texas Hard Money Loans for your next flip:

• Lower your initial bid: If your lender is offering 100 percent financing on the initial purchase price, lower your initial bid, so that your loan can pay for the rehab costs as well.

The less you pay for a property up-front, the more financing you’ll have on hand for repairs and the less money you’ll need to pay out of pocket.

Say your lender is offering you the full purchase price of a property listed at 100 K, and repairs will cost you ten thousand. In this case you’d simply lower your offer by ten thousand.

The math, in this case, works out as follows:

90 (to purchase the property)+10 in repair cost-100 in hard money= basically a free flip.

This simple formula will always work regardless of how much financing your lender is offering up front:

Purchase Price + Cost of Repairs = Funding Offered

Not every seller will be so kind as to lower their initial sales price by thousands of dollars for the sake of your own profit and convenience, so

• Take out a small loan to make up the difference: If you encounter, an intransigent seller unwilling to give you the required discount is your hope of getting 100% financing lost? No, all you need to do is take out a small credit line to make up the difference.

Getting 100 percent Texas Fix and Flip Loans comes down to following a simple formula.

The first thing you should look for is the largest amount of financing possible. The more financing you have, the more wiggle room you have when it comes to negotiating the purchase price of your flip.

So get a significant loan first then buy the property at a low enough cost so that your loan covers the cost of rehab. Working within the formula:

Purchase Price + Cost of Repairs = Funding Offered

Using this simple method you can flip for free regardless of the amount of money that your lender initially offers you. Remember you can always plug any shortfall in terms of financing with a small credit line.

If you can manage to make the numbers work you can pay nothing for your next flip.

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.