[title: What Are The Best Fix and Flip Loans?]
If you’re new to fixer uppers, it’s enough to just be in-the-know through all the latest HGTV shows—an investment will be important for the property, but also your time, energy and resources. This includes your mortgage lender, loan process, and who to go to for successful fix and flip loan.
When it comes to fixer uppers, you have to have some extra cash. It’s not always difficult to find a property with potential on the market, but you also need to invest in possibly modernizing the home, fixing problem areas, and making it valuable to potential buyers.
If you don’t have extra money lying in the bank or a generous relative who can invest in you and your project, you are probably considering mortgage lenders to help fund your project. But what makes a successful mortgage lender who is worth your time and efforts?
Mortgage lenders can be public or private. When most people think of loans, they probably think of traditional money lenders, like banks and credit unions. These options are here for you, but with a catch. They have high expectations of their borrowers and the requirements for acquiring a loan can be strict. Simply, not everyone may qualify. Fortunately, there are other options if you don’t qualify with a traditional lender. Something else you may not know is that private, alternative loan lenders may be better for renovation projects anyways.
If you do not obtain a loan from a public loan lender, you may be interested in speaking with a private hard money lender. A private hard money lender is an untraditional loan option by private individuals or companies. Because private hard money lenders are not backed by large, public companies, they can work on an individualized basis. Just because you don’t qualify with a public lender, does not mean you will not qualify for fix and flip loans with a Private Money lender.
Private lenders and mortgage brokers offer something called hard money. Once approved, hard money can usually be obtained within the week so you are able to begin working on your renovation project, or bidding on the competitive housing market, right away. Because private hard money lenders are speedy and flexible, they come with higher interest rates. Borrowers may still choose to work with private hard money lenders for their fix and flip loansbecause of the time line.
Hard money is meant to be paid back fast—within the year—and a successful renovation project smooth updating and a quick sale makes repaying the loan in such a timeline possible. Borrowers may also be interested in speed because of the increased ability to obtain a house with potential. Being able to obtain it makes the project possible, and not all homes are great contenders as fixer uppers.
If you are seeking a qualified mortgage broker in Arizona, look no further than the professionals at Level 4 Funding. We offer a free initial consultation with no upfront fees, so we can determine what the best fix and flip loansare for you. Give us a call today!
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.