Secure Returns: Loans to flip houses in Arizona Help Flippers Earn More Money
Need cash to get into the flipping game? Hard money loans to flip houses in Arizona may be right for you.
Flipping homes offers many benefits to real estate investors. One of the main appeals to flipping houses is it offers investors a return within a short amount of time. Within a few months to under a year, investors locate, purchase, and renovate a property presenting a return potential. Returns on investing in a flip home are large, close to 50%, sometimes even higher. Not bad.
Nice, a good return, but where do flippers start? Well, typically, investors purchase property during a booming housing market, a time when real estate prices are on the rise. (Like right now, when flipping is at its highest since the mid-2000s.) The rising cost of homes indicates a rise in equity and an increased possibility of a good return. With this in mind, flippers tend to find distressed property in a neighborhood where renovated homes are selling well. They will do their homework and look at the “comp” or comparable sales. After locating a distressed property, flippers take into account the “perceived” renovation costs, how much will renovation cost to receive a return similar to that of other renovated houses in a given neighborhood. The trick is finding a property that would hypothetically receive a greater return for less work. Renovations could be as simple as reflooring, landscaping, and painting a few rooms. Other times, it might be necessary to delve into more complex renovations to receive a return. Either way, the main questions remains: Do the ends justify the means? Can a decent profit be made for all of the labor? If yes, “you may pass GO.”
So, a flipper has found a house, done the homework, and taken into account all of the perceived costs. Great. What is the next step? Funding. Since most Americans don’t just have an ungodly amount of cash overflowing from their pockets and bank accounts, funding is a very important step. And since money does not matriculate out of thin air, most flippers need to find a lender, generally one that gives loans to flip houses in Arizona.
Hard Money Lenders Offer Less Restrictions for Those Looking for Loans to Flip Houses
Hard money lenders typically grant loans to flip houses. This is due to the fact that conventional lending is practically restrictive when it comes to loaning to real estate investors new to the business, with low credit scores, and with a history of subprime credit or past delinquencies.
Cut through the red tape! Talk to your hard money broker to get loans to flip houses in Arizona today.
For this reason, many new flippers enjoy the face-to-face, hands-free approach to hard money loans to flip houses. They find it a way to cut through the red tape of bureaucracy and start their new path of securing the returns that they need. If eligible, rates may start as low as 7.99% for terms extending from 3 to 60 months. Applications processes are short. Funding up to 90% LTV is available through certain lending programs for borrowers meeting collateral requirements.
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