You’ve probably seen the headlines. The construction industry is struggling to keep up with the demand for new homes across the country. How can you use this to cash in? Arizona Spec home financing!
There’s a housing crisis going on in America that’s reaching nearly historic proportions. In fact, in the 60 years or so that these kinds of stats have been kept, new home construction is at the lowest level we’ve ever seen, according to The Wall Street Journal. In 2018, we fell short of the goal by 300,000 units. And it’s not for lack of demand; people are looking for new homes and just can’t find them. It’s just a matter of not being able to keep up.
So there’s no question about it, there’s plenty of opportunities to make money here. Here’s the problem: getting funding for a spec home can be tricky. Banks and big financial institutions like to play it safe so they are hesitant to take a risk on endeavors like that, especially bare lots of land. That’s even truer if the builder has any kind of stain on his or her record; a foreclosure, a short sale or bankruptcy will have most traditional lenders turning heel and heading for the hills.
So who is willing to take a chance on spec home builders? If you’re looking to build a spec home and the banks have said no (and even if they haven’t), a hard money lender might be your best bet. Since collateral is used to secure these types of loans, your financial history and credit scores are of less concern. What is important for Arizona spec home financing is the current market value of the land, the location of the lot, your experience in the business and what you plan to do with the land.
Here’s another advantage to going the hard money route for Arizona spec home financing: it’s super fast. As a builder, you need to jump on an opportunity and keep to your schedule and hard money lets you do just that. Yes, Arizona Hard Money Loans come with higher rates, but many builders use them as a bridge to get their project off the ground before switching to more traditional funding. If you’re looking for financing for your construction project, give us a call at Level 4 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.