House flipping is as hot as ever and, for the right kind of person, it can be quite lucrative, too. Unless you’re already loaded, you’re going to need to find a loan to do it, so here are some tips for doing just that.
According to the research firm Attom Data, over 200,000 homes were flipped in the year 2017. The average profit on each flip? A whopping $68,143! That’s a pretty good take for a three, six or even 12-month project. Of course, to get there, you need to find a great fixable property and secure financing. There are a number of ways to get loans to flip houses in Arizona, and here are three of the most popular.
- Go to a friend or family member. It could be a cousin, an uncle, a parent, or a brother, but if a family member has the cash on hand, they may be interested in investing in your fix and flip property. They may charge you lower interest rates because of your personal connection, or they may want to arrange of cut of the final profits. However, you choose to proceed, make sure you get everything in writing. There’s no faster way to lose a friend or family member than getting involved with a loan.
- Go for a home equity line of credit (HELOC). Many banks will let you borrow against the equity of your current home. By equity, we mean the difference between your home’s market value and the remaining mortgage balance. The nice thing about a HELOC is that you have a pool of funds from which to draw, and you’ll only pay interest on the amount you use. The downside to a HELOC is that you must already own a home with significant equity.
- Go for a Hard Money Loan in Arizona. Hard money loans use funds from private individuals and investors. The requirements for qualification are less than a bank loan because the loan is secured by collateral. Hard Money Loans in Arizona to flip houses also come through much faster (in as little as 2 weeks).
Going the Hard Money Route
Hard Money Loans in Arizona are a great option if you’ve been turned down by the banks or you don’t have relatives who are willing to invest. Keep in mind that the terms of a Hard Money Loan in Arizona will be shorter, and the interest rates will usually be higher. That’s what makes them perfect for flipping — the idea is you get your property, fix it up, and then sell it for a profit before the terms are up.
Finding a Hard Money Loan in Arizona for a Fix and Flip
Thinking about going with a Hard Money Loan in Arizona to flip houses? If you have questions about whether to qualify and how the process works, we’re here to answer them. Give us a call or chat with us today to see how we can help.
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.