Posted over 5 years ago

Are You Eligible For An Arizona Fix and Flip Loan?

This real estate loan is exactly what it sounds like –the buyer purchases a home with the intent to fix it up to sell at a profit as soon as possible. Make certain you know the advantages and disadvantages of these loans before you take one out.

Since an Arizona Fix and Flip Loan is basically a short-term loan, most investors use an Arizona Hard Money Loan letting them buy, repair and sell off a property within a year’s time. Private investors and people you already know are your best bet. They will be evaluating the property value both before and after the renovation is done as well as your ability to complete the project.

This takes much less time that traditional bankers and lenders who go through your background with a very careful eye. If something turns up that is negative, hold up the entire process in order for more proof that you are a good risk according to the rules they have set up for borrowers.

Traditional loans also only look at home’s current value, but they are less expensive than other types of funding. Standard loans also require very strong credit for loans while other types of investor are more interested in past and current projects than your actual numerical credit rating.

When first starting out, finding money may be difficult and borrowing against private assets and setting up an escrow account to use might be required. Interest rates can often range from 10 to 20 percent per year.

So, is this type of loan the way for me to take?

Your traditional lenders—banks, mortgage companies, most finance companies--will not lend money if there is a health or safety issue with the house. Arizona Fix and Flip Loans are not restricted by this concern.

Arizona Hard Money Loans can be closed within a week if you end up with a good professional lender. These lenders are looking at recovery for themselves however—they want to feel assured that you can renovate the house and sell it as quickly as possible in order for them to recover their money. Liens on the property are attached so if a sale falls through they can be assured of getting their money back.

The longer you are in business, the less you’ll pay for a loan—sometimes a borrower may can receive 100 percent and have several projects running at once depending on past performance.

Find out all the details, advantages and disadvantages, beforehand instead of just jumping in over your head first thing.

Be a detective before going down this road—Arizona Fix and Flip Loans are not the answer for everyone. It will pay you to be as certain as possible that you will be able to perform in this area--the adage ‘knowledge is power’ is very true.

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

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 and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.