A traditional loan is not the best choice for a fix and flip project. But there are some options that are options that are great for Arizona Fix And Flip Loans.
Fix and flip projects are normally short-term projects that real investors look for to turn a fast profit on a property that is not in perfect condition. The investor purchases the property with the intention of renovating and repairing issues so that the property becomes more desirable and more valuable. The key to success is finding the right property at the right price and quickly purchasing it before another investor becomes interested and a bidding war ensues.
The speed of Arizona Hard Money Loans make these privately funded loans perfect Arizona Fix And Flip Loans. The time frame of a hard money loan is normally six months to a few years but that can vary depending on the needs of the borrower. Being that the lender is a private individual or lending group, the terms of Arizona Hard Money Loans are much more flexible than those of a traditional lender. In many cases, private lenders can fund a fix and flip loan in as little as 15 days.
In addition, hard money is an asset-based loan, meaning that the loan qualification is based primarily on the value of the property and not on the borrower’s person creditworthiness. This allows borrowers with lower credit scores or no credit history to obtain a fix and flip loan to begin a new career in real estate investing. The borrower just needs to know the value of the property that he or she is purchasing as well as the cost of the needed renovations to create a realistic fix and flip budget and to determine the down payment needed for the project.
Refinance Your Home
Because investment property loans, including Arizona Fix And Flip Loans, do not offer mortgage insurance borrowers will need to have 20% or even 25% of the purchase price to make the down payment. One of the easiest ways to secure that much money is to refinance your personal home and liquidate the equity for the Arizona Fix And Flip Loans down payment. A home equity line of credit is another way to tap into the equity in your home to begin a fix and flip project.
The Nature Of Fix and Flips
Almost all fix and flip projects are designed to be very fast. The buyer does not want to carry the mortgage on the property any longer than necessary. So the repairs and renovations are carefully scheduled to be completed as quickly and efficiently as possible. Then the property is placed on the market at a competitive price in the hope that it sells quickly. Knowing this, investors are willing to pay the higher interest rate on a hard money loan because this loan funds quickly and allows for a fast purchase to begin the renovation project. Of all of the short-term options available, hard money is often the one which suits a fix and flip project the best.
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.