Demand is outpacing supply here in Arizona now, so it’s a good time to be a builder. Here’s how to be a part of the action with Arizona spec home financing.
While building a spec home might seem like a risky proposition (and it can be depending on a lot of factors), there are actually a number of advantages to it. This is especially true in a market like the one we have here in Arizona where there’s more demand for new housing than there is supply.
● There’s much less competition. Everyone and their mother are getting into flipping, wholesaling and rehabbing, but spec home building is a much more specialized endeavor, which means less people out there doing it.
● You get to start with a clean slate. When you buy a property, you have it inspected, but there are all sorts of things that can go wrong. These little surprises have sunk many a flipper. With a spec home, you get to control the materials and oversee the construction, so those mini shockers are fewer and farther between.
Things to Know Before Getting Spec Home Financing
Before you come to a private money lender to build a spec home, there are a few things you should have in your back pocket. These are:
● Know your market backward and forward. Know the absorption rate for current homes. Know the employment factors. Know average sale prices. Know trends in the market. Know the average days on the market. Do your research and understand all the factors involved.
● Come with a budget. As we all know, projects can get delayed and budgets can blow up, but it’s important to crunch the numbers ahead of time and be as realistic as possible.
● Find the best deal on the lot. Much of your profit will come from the purchase of the lot, so finding a fantastic deal will increase your margin for success. And isn’t that what we’re all trying to do?
Spec Home Financing in Arizona
Finding Arizona spec home financing through the bank can be a challenge, especially if you don’t have a perfect financial situation. Private money lenders, like Level 4 Funding, can be much more flexible with approvals, terms and rates. So if you’re ready to build your spec home in Arizona and need Arizona spec home financing, give us a call today to talk about your options.
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
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.
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