According to ATTOM Data Solutions, who are the “curator of the nation’s premiere property database,” it shows that 207,088 single family homes and condos were flipped in the US in 2017. Flipping houses is at its highest level since 2006—and from the looks of it, the trend will continue to grow.
There is a lot of hype out there connected to flipping houses. Part of the excitement comes from house flipping television shows that glamorize the work. It can be a lucrative profession—even if it’s only a part-time job.
The majority of investors who enter into the fix and flip business need help with financing. That’s not to say that after a few successful flips they will need as much help— and may not need loans at all. However, starting out in any business, everyone needs a little help. Once a few deals are closed, the money starts rolling in and there is more financial security.
THE DOWN LOW ON HARD MONEY FIX AND FLIP LOANS
What is the reason hard money loans have become so popular with Arizona fix and flip loans? Why are investors choosing a hard money loan over a conventional bank loan?
To start, Arizona hard money loans are funded by Arizona private money lenders—or Arizona Hard Money Lenders, as they are better known. Because these loans are funded by private investors there is more flexibility than traditional banks. Conventional lenders are funded completely by banks and credit unions. The banking industry has not come around to being comfortable lending on a house that needs repairs and will be turned around within a few months. This is where Arizona Hard Money Lenders are comfortable. They lend knowing the risk is there, but also knowing risky deals can give the greatest paybacks. Because of this risk, hard money loans come with higher interest rates—usually ranging from 7%-13%. But these rates are offset by the short holding process.
House flipping is very competitive and investors must act fast when they find the right property. Arizona Hard Money Lenders can typically fund investors in less than 2 weeks. The conventional loan process is very slow and can take up to 2 months to receive your funds. House flippers are always going to be in competition with all cash buyers. When you find a property you must be prepared to act quickly or lose a potentially great deal—that equals losing revenue.
If you don’t have great credit—that doesn’t exclude you from dabbling in the house flipping craze. Arizona Hard Money Lenders make it possible for borrowers with damaged credit to benefit from house flipping. Conventional lenders require a spotless credit report. Arizona Hard Money Lenders allow some damage on your credit report because they are using the property as collateral.
Hard money loans are short-term loans. It is possible to get 100% financing of your purchase price as long as you have the assets to back the loan.
These loans are not necessarily the best option for a long-term investment, as they are meant for a quick turn around such as a fix and flip. Usually hard money loan terms are from 6 months to a year, but because of the flexibility Arizona Hard Money Lenders have, these loans can be extended up to five years.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
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.
© 2016 Level 4 Funding LLC. All Rights Reserved.Copyright | Privacy Policy | *Terms & Conditions
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.