Successful Investors Know How to Fix and Flip in Arizona
Stocks and bonds aren’t the only way to grow your capital and invest in your future. Fix and flips homes in Arizona are one way to diversify your money and make a good investment.
I bet some of you remember when the major investments for money makers were stocks and bonds. Stocks, though they are risky, can have a big payoff and bonds are less risky, but have a lower rate of return. But what if you don’t want to take the traditional route of investing? Real estate can be risky as well, but fix and flip in Arizona has been a great way for investors to make money since the 2008 crash.
Properties come up frequently on the Arizona real estate market and investors are turning to hard money lenders in Phoenix to get the capital they need to make cash offers quickly. Here are the facts you need to know before diving head first into fix and flip!
It’s Not Cheap
You’re going to need a lot of capital up front. You’ll need to purchase the home and have the money to cover repairs, insurance, potential HOA fees, and other expenses. You’ll need to have enough in your reserves to cover those monthly fees for as long as you take to renovate and the time it will take you to sell your property once it’s complete. It would be good to get information on the neighborhood you’re looking to buy in so that you have that information. Some neighborhoods won’t have an HOA and some sell quicker than others. Get yourself acquainted with a real estate agent who is familiar with fix and flip in Arizona so you can get some background knowledge.
There Are Expenses Even After Renovation
Think about the costs involved with selling a home. You may want to list with an agent who can market the property for you and get willing and able buyers in quickly. There’s a commission that’ll have to be paid in order to make that happen, but it may cover you better from a legal standpoint to have an expert there to sell the property, especially if they’re familiar with fix and flip homes in Arizona.
Then there’s the potential closing costs. It’s not uncommon for buyers to ask the seller to cover closing costs as part of the contract and those could be upwards of 3% of the purchase price. If you’re ready to list your property and have chosen a listing price, plan to have that extra expense just in case.
If you’re moving into the fix and flip realm it’s good to know all the potential expenses so you can be prepared for whatever comes your way. Meeting with a realtor and a Arizona Hard Money Lender can help you begin your journey of fix and flip in Arizona, and ensure future success as you grow your investment portfolio.
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