Since it seems easier than it looks, you will need technical knowhow and proper planning, but the substantial mountain to climb is the funding of your project. Private investors and Hard Money Lenders in Arizona are great sources for flipping house loans. The time and paperwork of traditional lenders is not required with Hard Money Lenders in Arizona. The property itself is evaluated (both pre-renovation and post) and they look at your resume for successfully completed fix-and-flip projects.
If you’re buying an investment property, a conventional mortgage loan may not be appropriate for you.
· Traditional bank loans are inherently inexpensive, but you will need to pay closing costs.
· Banks are traditionally slow to close. The extensive application process means that your finances will be examined with a microscope. If any questions are raised, you will be required to produce more documentation. It may take 30 to 90 days to close.
· They will examine your ability to repay the loan. They look at your expenses versus your monthly income.
· A conventional lender will look at loan to value, how much the property is worth, and how much you are borrowing.
· When considering an Arizona flipping house loans, they will look at the homes after repair value.
· Banks require that you have a strong credit score while alternative lenders are more interested in your previous projects than your credit score.
· If the house is in good condition, then you have a fair chance to secure traditional financing because banks prefer properties that are in good condition. Lenders prefer to move in ready homes.
Traditional financing may be possible if you comply with the following:
1. You have significant assets
2. If you are not strictly flipping
3. Equity is significant in another entity
4. You have a history of successful projects in the real estate fix and flip model
5. You have received past successful loans on an unsecured basis
Getting a loan from a hard money lender is much easier. Because of the risks involved, however, the cost of a Hard Money Loan in Arizona can be higher. Private loans for your project(s) can come from almost anywhere. There are two broad categories that flipping house loans can come from:
· People you know
When starting out, it may be frustrating because you will hardly find anyone that is willing to lend you money. Your friends and family may be your only option. You may need to fund your first few deals on your own. Build your network—be involved with your community, meet people and network.
Hard Money Lenders in Arizona are interested in your collateral as opposed to your credit score and credit worthiness. In essence, they are considered asset-based lenders.
If you have a strong asset and a good plan in place, Hard Money Lenders in Arizona can offer you that first opportunity. We work with hundreds of private investors, many of which specialize in the fix-and-flip model. Call us for a no-obligation quote.
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.