Making money off of fixer uppers may seem easy based on the endless stream of shows on HGTV. From Property Brothers to Flip or Flop, profit seems possible—and the inspiring renovations can be exciting! So, how could you make the most of a fix and flip without the glam of a film crew on your side?
Planning will be the first step. You will need to do research into your property and its needs. What renovations are required? What design decisions will contribute to its overall aesthetic? What kinds of things should you prepare for, and what teams are necessary to ensure everything goes according to plan? A lot goes into fixer uppers, and you need to be prepared to answer all the questions. After all, your loan lender will consider your financial history and your renovation abilities.
Building a portfolio is not easy—everyone starts somewhere, even if it is with an empty binder. Once you have your team assembled and the beginning of plans for a specific property, you may begin to seek out a loan lender.
When people think of loans, they may think of going to a traditional lender, like a local bank or credit union. However, traditional lenders have high expectations of their borrowers. From a great credit score and debt to income ratio, the last thing they are likely thinking of is your flipping abilities—excellent portfolio or not. If you are having trouble obtaining a fix and flip loan, you may be referred to Houston Texas Private Money Lenders who offer hard money. Private lenders are untraditional options, but they can approve more people than traditional lenders. Instead of focusing on your ability in regard to finances, they focus on collateral. What is your property? What are you plans? What team have you assembled to achieve success? They will be more focused on you as an investment. This doesn’t mean that they won’t consider you as a candidate based on your financial reliability—they will. However, it will not be the only factor. This means you have a higher chance of being approved.
Pros of Using a Hard Money Lender for Your Arizona Fix and Flip Loans
Arizona Hard Money Lenders are great options for fixer uppers. Not only can they qualify more people for their loans, but they can offer money fast—sometimes as soon as the day of. If not, they usually do it within the week which is several weeks sooner than traditional lenders. This is a great trait especially if you are working with a fixer upper and need to obtain a competitive property off of the market fast. Additionally, private Arizona Hard Money Lenders require short repayment periods. Depending on what you need your loan for this may not be a good thing. However, this is a great trait for fixer uppers because of the goal to have a smooth renovation and a quick sale with a profit. They do, however, have high interest rates and fees. For that reason they may not be for everyone, but, when working with fixer uppers, they may be the perfect solution as you are seeking out Arizona Fix and Flip Loans.
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.