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Using Arizona Hard Money Loans to Flip Commercial Properties without t
If you use to flip commercial properties, you might not have to spend a nickel on a single nail to raise its resale value. Learn how you can use commercial property valuations to your advantage so that you can flip without the fix.
You’ve probably used hard money to flip residential properties. You secure an undervalued home, pouring months of blood sweat and tears into your project and then you resell it at a higher value. Residential flips take a lot of work because you can only add value, by improving or adding amenities. But flipping commercial properties is different. If you can raise rents on a commercial property, you can increase its resale value without doing any rehab.
You can use Arizona Hard Money Loans to flip commercial properties without the fix.Commercial buyers don’t care about bathroom fixtures or paint colors; the one thing they care about is income. Consider how commercial properties are valued based on cap rate, where:
So, if you can boost the revenue generated by a commercial property, then you can resell it for a higher value, and this might not take any rehab. If you don’t believe such a thing is possible, consider the following examples of rehab free commercial flips:
Given the above examples, you should use hard money financing to scout out locations in up and coming areas that are suffering from low occupancy, or find properties where rents are well below the average for the neighborhood.
The above examples are relatively conservative. Because, in reality, you might need to do rehab some work to justify rent increases or to attract new tenants. Nevertheless, given the way commercial properties are valued, it is possible to flip commercial properties without the fix.
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
[email protected]
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.
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