Are you eager to get into the fix-and-flip game, but discovering residential Arizona Hard Money Lenders aren’t exactly jumping to support you? It probably comes down to one of three reasons, and the good news is, they’re totally fixable.
1. You’re inexperienced. People new to real estate investing make more mistakes and don’t have the experience to know how to handle surprise issues that surface during a project. Bear in mind, there will always be unexpected events that try to derail a project. At the very least, lack of experience costs money. At worst, it can leave residential Arizona Hard Money Lenders totally holding the bag. The best fix for this is to work for someone with experience in the industry for a while or to bring on a partner with experience who will make the person financing your deal more comfortable.
2. You want the lender to assume all the risk. Fix-and-flip loans of this nature are asset-based, meaning your loan amount will be based on the value of the property. Experienced rehabbers with a good plan and property can get up to 90% of the value, but as risk increases, the less you’ll be able to get. You’ll get more financing offers if you’re putting more of your own money into the deal because it builds confidence with the lender that you’ll see the project through.
3. You haven’t done your homework. People who are successful with fix-and-flips know the numbers like the back of their hand, and they either get there through experience or by building a team of professionals who are knowledgeable in the areas they aren’t. For example, if you aren’t a contractor, don’t try to guess what it will cost to fix a leaky roof. Bring someone in who knows. If you aren’t an appraiser, bring someone in who can accurately establish value.
When Investors Risk Less, They’ll Work with You More
The reality is, residential Arizona Hard Money Lenders want to fund a project, earn alongside you, and then put their money into another project quickly. When they see risks to this model, they’re more hesitant to cover projects. If you’re struggling to get financing, the best way to overcome it is to reduce or eliminate their risks, which creates a win-win situation for both of you. In fact, many prefer to work with the same rehabbers time and time again because they have faith in their capabilities.
Increase your eligibility and get better terms by working with a knowledgeable broker.
If you’ve got the knowledge and the team behind you to complete a project successfully, there’s almost no reason why residential Arizona Hard Money Lenders won’t work with you. However, it also helps to have someone in your corner who understands what your lender is looking for and can help you shore things up before trying to get funded. Work with a broker who can examine your plans and will find you the best terms possible, so you can get funded fast and get top ROI on your project.
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: 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.
© 2019 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions
No comments:
Post a Comment