With the increased ability of financing and rising home prices, house flipping is at heights not seen since 2007. Hard Money Loan in Arizona’s can give first time flippers the ability to get in on the ground floor.
Today, flippers are earning higher profits directly related to the shortage in homes. If you are new to flipping, you have probably heard that buying, fixing and selling can be lucrative. The funds that you will need must cover buying the property, renovation, property taxes, utilities, and homeowner’s insurance from the date that you buy the property through the rehab and until it sells. When you sell the home in 12 months or less, you face short term capital gains in the range of 10% to 37% depending on your tax bracket.
If you are seeking 100% financing to get started, you may face additional obstacles. Many lenders follow the 70 percent LTV rule. Even with a down payment, you will find that getting a loan for flipping homes involves higher interest rates than a home mortgage. This is due to the higher risks involved in flipping than a home mortgage. If you are inexperienced, then you will face even more head winds. You may want to find and partner with an experienced flipper who has a successful track record. Once the team has a successful track record, then you are ready to venture out on your own.
Hard Money Loan in Arizona are the answer for many first-time flippers. Terms are usually one year or less with interest rates that range from 12% to 18%. You will also need to pay points, usually 2% to 5% of the loan value. Some Hard Money Lenders in Arizona use the after-renovation value (ARV) as the basis for calculating the loan. Others rely on the value of the home or property before renovation or repairs are made.
Arizona Hard Money Loans vs Conventional Loans
Hard Money Loan in Arizona have a lot less bureaucratic red tape than a conventional loan. Hard Money Lenders in Arizona are not bound by the lender’s guidelines regarding the property and the shape it is in. These lenders evaluate each project based on the strength of the deal and the experience of the flipper. The advantage of the hard money lender is that they are not concerned with the borrower’s qualifications. If the flipper defaults, the hard money lender can foreclose on the property.
Options for funding your first fix-and-flip includes private lenders, Hard Money Lenders in Arizona, or real estate crowd funding, all of which can help you achieve your dreams.
At Level 4 Funding, we work with hundreds of private investors who have helped many first-time flippers obtain their very first property with a Hard Money Loan in Arizona. We offer the lowest rate in the industry and offer loans up to 90 percent LTV with 100 percent of rehab. Call us for a no-obligation quote. We may just be able to find the lender that can start your career as a fix-and-flip investor.
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.