Colorado Hard Money Lenders are known for having low qualification requirements for their loans, but fix and flippers who are new to the game sometimes get turned down. We’ll tell you why and help you know what you need to get approved.
Let’s face it. We live in the age of the fix and flip. Every week, there’s a new show popping up about couples who do flips, and most us know at least one person who’s tried his or her hand at flipping. All of this can make it seem like a simple way to make millions overnight. And, yes, it can be lucrative, but you’ll need to have a strong strategy in place and know your numbers backward and forward. Even then, an inexperienced flipper can run into unforeseen issues that derail the project entirely.
One of the biggest problems new flippers run into is not knowing how much cash they need. Some lenders will fund up to 90 percent of the sale price, but you’ll often have to come up with the rest. Even more pressing, though, will be the costs of repairs. It’s an almost universal rule with flipping: it always costs more than you think. The best way to minimize this reality is to hire a trusted, experienced inspector who goes over the home with a fine-toothed comb.
The second biggest issue for first-time flippers is not having a plan. And having a plan, in this case, means more than just having a schedule and a basic budget for the work that needs to be done. Colorado Hard Money Lenders are taking a big risk on your dream, so they will want to know your timeline, exit strategy, and backup plan in detail. Here’s the good news: you can employ a range of professionals to advise you, hire a seasoned flipper, and consult with a contractor to get a solid plan in place.
This is the reality: even the more seasoned pros will run into issues on a flip. It’s the ways you prepare for and handle those bumps that will ultimately determine your success. If you’ve been turned down by banks and other lenders before, don’t give up hope. Rather, ask questions to see if there’s something you can do to increase your odds next time.
Every Colorado Hard Money Lender is different, especially in terms of what they’re looking for. The more you crunch the numbers and the better you prepare, the better your chances are of getting the green light. Here at Level4Funding, we work with experienced flippers, but we’re willing to listen to newcomers as well. If you’ve got a dream and a plan, give us a call today!
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.