One of the hardest challenges in the real estate “flipping” business (when you buy a property solely to fix it up and resell it for a profit) is getting approved for a loan. Most banks or mortgage companies will turn their nose up at you because they’re well aware this is a short term project and although probably a labor of love, not the kind of long term investment they desire. You’ll probably already consider finding a hard money lender Arizona, but even that route isn’t always easy peasy. Even if you can get approved in approximately 24 hours without much of a credit check or background check, you’ll want to do your homework.
Make sure you understand the history of the property. What happened to it that got it into it’s decayed state and why. For example, if a McDonald’s closed, it may be because property taxes were too high or the neighborhood was too rough or poor to afford visiting the place. You’ll want to be sure that the decay is more superficial than complete and utter destruction of the property.
Talk to contractors. Get a few estimates on what it will cost to paint, refinish, tile and otherwise repair the property. If you head into the private money lenders Arizona office with information on repairs needed, a little history and an estimate of the costs involved, you’ll be that much more likely to get approved. Everyone likes someone knowledgeable about their job, so do a little extra research and then make offers.
Just like with any business, bank or mortgage company, hard money lenders Arizona want to see that you’re interested in a particular project. Always return calls promptly and get the information they need in a timely manner. Hard money lenders keep less capital on hand than banks. If you delay in getting back to a hard money lender, they may lend their assets to another borrower.
The first step to being the first in line to get approved for one of these loans is to so a deep, penetrating interest in the project. Let them know you’re not just in it for the money. You don’t want to just renovate an old nursing home, you want to give it a modern feel and make sure the community at large is prepared for such a great benefit to the area. Showing this kind of enthusiasm shows private money lenders Arizona that you’re committed to the project and will see it all the way through. And if it appears to be some kind of charitable act that will make the world at large a better place, they’ll be all the more ready to join your team and fund your project. After all, everyone loves to feel like they’re doing some good in the world.
Also, don’t forget to do a little homework. Make sure you know the potential property inside and out, including but not limited to talking to contractors and getting estimates on costs and repairs. You’ll really show them what it’s all about if you’re passionate and knowledgeable.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.