How to Turn Arizona Hard Money into Profit: Tips from a Pro
We had the pleasure of interviewing Jenna Jacques, a real estate agent and professional house flipper.
This is Part One of a four-part series in which she shares her experiences
working with Arizona hard moneyloans to generate profit.
The media can make it seem like the fix and flip business is
full of cutthroat individuals who rely on secrecy to turn a profit.
Fortunately, nothing could be further from the truth. We spent some time
discussing the industry with Jenna Jacques, and she was not only open about the pitfalls of rehabbing for profit, but also gave us some pointers on how people can turn their Arizona hard money loans into a lucrative enterprise.
1. Expect the unexpected.
By trade, Ms. Jacques is a nurse, though unplanned life events
presented her with challenges that her initial career couldn’t accommodate. She
took a leap of faith, poured herself into rehabbing homes, and became a
licensed realtor. Including traditional home sales, as well as her fix and flip
projects, she’s already sold 40 homes this year. When asked about her most
memorable project, she humbly explained that she purchased a home to rehab for
her family, but complications arose that left them unable to move in after the
house was finished. “I put my heart into this home because it was for my
family, but the best part is that a wonderful family purchased the property and
I now know that they are enjoying the home as much as I would have.”
2. Do your ownresearch. When you thoroughly research a property, you can do your own comps. Comparable, or recently-sold similar properties in the area, are a key
indicator in what you can expect to receive for a home once the rehab is complete. When paired with the expenses involved in doing the repairs, it gives
you a good idea what you should offer for the fix and flip to begin with. This research is imperative when you contact an Arizona
hard money lender as well.
3. Understand the
difference between a minor and a major remodel. It’s not always easy to
determine the anticipated costs in handling a rehab, but it’s absolutely
essential to achieving a successful outcome. When in doubt, bring in an expert
to help evaluate everything the project will entail.
4. Give yourself a
cushion in case you run into any issues. While this bit of advice may go
hand-in-hand with expecting the unexpected, it’s always wise to provide
yourself with wiggle room, just in case a surprise creeps up. This means
setting aside enough cash on the side for unanticipated repairs or updates that
go over budget, and also allowing extra time to handle any issues.
5. Choose your
property carefully. The experienced home rehabber offers one major word of
caution: “Don’t just buy a house to buy it!” You truly must do the research and
exercise diligence before investing in a project to avoid winding up with a fix
Using Arizona Hard Money to Fund Fix-and-Flips
Enables You to Lend a
Helping Hand to Others, Too
Ms. Jacques’ optimism never skips a beat. Even as she discussed passing the home she lovingly restored on to another family, she beamed with pride that someone is enjoying the fruits of her labor. “I love helping people find their dream homes,” she mused later. “I really believe this is just as rewarding as nursing is. It goes hand in hand sometimes.”
Arizona hard money loans are only part of the equation;
a can-do attitude
is necessary to truly be successful.
In talking to her, it’s clear that Ms. Jacques didn’t simply
stumble onto the path of success. She armed herself with knowledge, researched
heavily, and saved for more than a year to build up the cushion for her first
fix and flip. She also has honed in her skills, and has a tried-and-true method
for determining costs and comps. While an Arizona hard money
loan can help you get your foot in the door if you’d like to get into rehabbing, education, research, and an unfailing can-do attitude are all necessary to turn it into a viable income source.
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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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.