Flipping houses is a unique business and it requires some specific services. Loans To Flip Houses in Arizona offer investors the speed and short-term needed to turn a great profit.
Flipping houses is a process that has become very popular in the last decade. But this newer type of real estate investment deal needs a rather unique type of financing as compared to the traditional mortgages that most homeowners use. Loans To Flip Houses in Arizona need to meet the time frame and other terms that flippers rely on to make their deal profitable. So most flippers elect to use non-traditional finance options.
Hard Money Loans To Flip Houses in Arizona are short-term loans which are funded based on the value of the property and not the creditworthiness of the borrower. These privately funded loans are often called asset-based loans because the property being purchased is the collateral for the loan. Borrowers like that these loans can be approved quickly and that the funding is also much faster than a bank or mortgage company. But all of this convenience comes at a higher interest rate than a traditional loan.
Cash out refinance loans are another option that is available to homeowners who have equity in their personal residence. Most lenders require about 30% to 40% equity in the home and a credit score of about 650. The interest rates are fairly reasonable at up to about 6% but you will need to pay closing cost which will increase your total cost on the loan. In addition, the time frame can be as long as 45 days to get the refi completed and the cash in your hands.
Another option that many homeowners choose is a home equity line of credit. The beauty of this option is that you can have the application and approval process completed long before you are ready to purchase a property, which allows you to make a fast offer and know that the money is in place to close the deal. In addition, there are no closing fees associated with a line of credit. It is open but costs you nothing until you decide to use the money. Then you begin to pay the interest once you use the money. An added benefit is that the interest you are paying on the HELOC could be tax deductible which will save you even more money in the long run.
Having many options is always good but it is especially important when you are flipping houses. The most critical factor in a flip is staying on budget to turn a profit. So acquiring a loan affordably allows you to invest more in the renovations to increase your earning potential. A smart flipper will always compare the total cost of all potential loans before selecting the best lender and the best overall loan cost for each deal. Knowing your options, how each loan works and how much it will cost are all factors that will have a huge impact on your success and profitability.
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About: 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.
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