It’s no doubt the resurgence of people looking to fix and flip properties is based on the numerous shows about fixer uppers on HGTV—but how can you do it successfully?
There are a few things all the stars of HGTV have in common: money and experience. To the average viewer watching at home, fixing and flipping homes may just be interesting; to another set of viewers, it may become a new interest and passion that needs to find fruition. While the housing market is one you may be eager to get into, there are a few tips you could follow when seeking Arizona Fix and Flip Loans if you are wanting to pursue a new chapter of home renovating in your life.
Fixing and flipping entails a lot that is often glammed up on TV: finding a potential property, obtaining it and a loan, renovating it with few surprises, and making a sale quickly—with a profit. All the factors may be overwhelming, and it may make sense to seek a “traditional route.” However, what not many people realize, is that untraditional lenders literally “lend” themselves to the fix and flip process.
Seeking Out Hard Money Lenders
Seeking out a hard money lender after you’ve sought out your potential property is a great option when pursuing Arizona Fix and Flip Loans. First, Arizona Hard Money Lenders are able to do what banks cannot: approve a wide variety of borrowers. If you are lacking experience and a good credit score, it’s unlikely that a bank will approve you for a loan, even if you’ve put in the time and effort into your planning and research. However, Arizona Hard Money Lenders are different. Instead of considering the borrower’s reliability first, they consider the property’s potential. This includes things like plans, and whether or not it would be a good investment for them. Arizona Hard Money Lenders are usually great options for fixer uppers because of their ability to approve borrowers, but for their ability to do it fast. Sometime they can get the loan process started as soon as the day of, which can be essential when bidding on a competitive property. Additionally, they only offer short repayment periods, which falls into the timeline of fixing and flipping a property, should you be able to flip the property without problems, and sell immediately.
Dangers of Fixing and Flipping
While Arizona Hard Money Lenders can be great resources to obtain your Arizona Fix and Flip Loans, it’s important to consider a few things. Despite the fact that Arizona Hard Money Lenders work well within the timeline of a fixer upper, their fees are more expensive than traditional lenders. Coupled with the risks that come with any property during the renovation process, Arizona Hard Money Lenders may not be the best option for everyone. Making money off the fixer upper definitely won’t happen if you aren’t able to provide yourself a financial buffer. Not only that, but you must be confident in the reliability of your lender—this is not a one-way street. The reliability of a loan lender, especially untraditional lenders, are just as important as your own factor as a reliable borrower. It’s possible to make money off of fixer uppers, but you have to put in the thorough research and be confident about what option is best for you. If you are unsure if Arizona Hard Money Lenders are right for you, you can always reach out to a real estate attorney who can help you move forward confidently.
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.