Join Us! Another South Austin Open House! Saturday 9/5/2015 11:00am-3:00pm

Join us for another OPEN HOUSE in South Austin!

We held this open last Saturday and had a wonderful turn out. However, this home is still waiting for a new owner!

When: Saturday 9/5/2015 11:00am-3:00pm

Where: 1133 Salem Park Ct. Austin, TX 78745

Click here for details

Click for details

This home features 2 bedrooms, 2 full baths, granite counter-tops, and an open floorpan. Built in 2010, you will enjoy the many upgrades and energy efficiency of a newer home. The seller just installed a $30,000 solar energy system. Electric bills are $0!!

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Financing for your real estate investments: HARD MONEY LENDERS

Throughout the years I’ve spent as a real estate agent, I’ve seen several methods people use to invest in real estate. Some investors choose to buy property to renovate then flip, or sell at a higher value. Others choose to buy, hold onto, and rent and enjoy the monthly income. Some investors use their cash to purchase these properties, but most will use financing (or someone else’s money). I will stop short of telling you about what “ABC Bank” or “ABC Mortgage” have to offer because there so many out there. One innovative way that I’m seeing more investors use to finance their properties is HARD MONEY.

After Repair Value (ARV)

Hard money lenders are third parties, private lenders who, for the most part, don’t base your ability to finance solely on your credit, assets, or even your ability to make your payments. They are more concerned about the After Repair Value (ARV). After Repair Value pertains to a property’s current value in its current condition vs. its potential value once it’s renovated

Simple scenario:

Hypothetically, lets say you choose to buy and invest in a property. Said property is currently worth $100,000 in it’s current condition. Most comparable homes in the same neighborhood are selling for $200,000 (move-in ready). The subject property needs about $40,000 in repairs. Most hard money lenders will finance up to 70% of a property’s after repair value. This property’s potential value is $200,000 if homes in the neighborhood are selling around $200,000. The lender may finance up to $140,000 (70% of $200,000). That gives you $140,000 in cash to purchase the home. Out of the $140,000 cash that the hard money lender finances you, you buy the property at $100,000 and spend $40,000 to renovate. Let’s say you put the property for sale at $200,000 with a realtor to maximize the home’s potential to profit, and it sells for $200,000. After the closing of the sale, you pay back the $140,000 loan to the hard money lender. Sold at $200,000 – $140,000 loan = $60,000 in your pocket. (This doesn’t take into account origination fees)

This is the hard money loan in its simplest form. Additional charges with hard money loans include a higher interest rate. I’ve seen hard money lenders charge 10%-18% interest on their loans, at 3-6 points (3%-6% down payment). Yes it’s high, but remember, the investor isn’t trying to live in this property for 30 years. The purpose is to finance an investment, renovate it, and sell as quickly as possible. If a borrower cannot do this in a reasonable amount of time, the costs add up. Time = Money Lost. Typically, hard money lenders will require a borrower to have the ability to convert the loan to conventional financing from a bank/mortgage lender within a year if they aren’t able to sell. Word to the wise: Rehab and sell as quickly as possible. I also didn’t take into account any Realtor fees that may apply when you list your property.

One wonderful thing to consider with Hard Money Loans is the ease of obtaining them. Usually they’ll take 7-14 days to finance without the red tape and appraisals that regular mortgages require. Whenever you purchase a property using hard money, it is essentially a cash transaction for all intents to the seller.

This example is just one variation of hard money lending. The process and numbers vary from lender to lender, and situation to situation. This is just one common way that I’ve seen here in Austin.

Some of the most common properties investors tend to purchase for flip and/or rent are foreclosures. Visit my foreclosure blog for more information on these great properties with high equity potential.

Contact me if you’re looking for a hard money lender to use in the Austin and surrounding areas.

You’re invited to leave comments below. Feel free to ask questions, or chime in on how you were able to use hard money to flip your property.

You’re welcome to visit my website to find properties to flip

*I am a real estate agent and I do not claim to be a mortgage officer. Just the messenger of good news*

Homes for Sale Parkside at Slaughter Creek Subdivision

Parkside at Slaughter Creek Entrance

The following are full details and all photos of all available in and around Parkside at Slaughter Creek Subdivision. For sale property information is a direct feed from Austin Board of Realtors MLS and is updated several times daily. You’re invited to leave questions/comments at the bottom of this blog.

Parkside at Slaughter Creek Map

Location!! Parkside at Slaughter Creek is situated in south Austin in between Onion Creek Subdivision and The Crossing at Onion Creek Subd, just off of Slaughter Ln. and East of IH35. Downtown Austin is only a 10 minute drive to the north while Buda is only 10 minutes to the south and San Marcos 20 minutes. This is a prime location for shopping and commuting with IH35 less than a mile away, and Southpark Meadows almost walking distance. Currently, the city is extending Slaughter Ln. to Highway 183 and McKinney Falls, making it even easier to travel to Austin Bergstrom International Airport, Luling, Bastrop, and Lockhart!

Is it time to sell?  Request a FREE custom evaluation for your property in Parkside at Slaughter Creek.

 

Crossing at Onion Creek Market InsiderMarket Trends in and Around Parkside at Slaughter Creek

In Parkside at Slaughter Creek homes were built in the early to mid 2000’s, and median home sale prices are around $220,000 depending on size and condition. In the area homes are selling on average within 26 days, at a median price of about $148,000, and only 6% of the properties were considered vacant. This means sellers are having no problem selling their homes in a reasonably short period of time, while buyers are facing stiff competition among one another to buy a home in this area.

Community Info

Schools serving this neighborhood are all Austin ISD schools: Blazier Elementary, Bedicheck Middle School, and Crockett High School.

The quality of a school can greatly influence home values in an area. Access detailed information on Austin school ratings, test scores by grade, student-teacher ratio, and much more.

Gain valuable insight into the Parkside at Slaughter Creek by looking at household incomes, crime risk, education levels attained, and potential for extreme weather. Use the map to locate points of interest like shopping, restaurants, and health care services.

For the Nightlife Lovers (like me)Red Shed Taven

This area is home to several legendary,
Austin venues…Red Shed Tavern, Waterloo Icehouse, Third Base, Little Woodrows, and several others. Southpark Meadows also features several bar and grills. You won’t have to go all the way to downtown for happy hours or your Friday libations 😉

-Thank you for reading this latest blog on Parkside at Slaughter Creek.-

You’re invited to leave questions/comments below. I respond promptly, and enjoy giving free real estate advice and tips.

see more at: http://JTresidential.wordpress.com

You’re welcome to visit my website and sign up for free updates on homes for sale at www.JTresidential.com