Property flipping has become very popular in the last few years. But many real estate investors have no idea how to best finance Fix and Flip Loans in Arizona.
Over the last several years there have been dozens of television show demonstrating the process of buying, fixing and flipping homes. But what those shows gloss right over is the correct process for funding Fix and Flip Loans in Arizona. Not everyone has $100,000 sitting around to start a real estate investing business. But there are a few pointers that can help anyone who is interested in entering the real estate investment business when they are just starting out.
The important fact to remember is that if you are using a traditional lender, you will need to have access to enough cash to cover at least 20% of the purchase price of the property. This is because mortgage insurance does not cover investment properties. If you are using a less traditional lender, such as a private hard money lender, then the amount of your down payment will vary depending on the lender’s stipulations.
Personal funding covers a lot more than just what you have sitting in savings. In some cases, you can borrow from your retirement account to fund a down payment for Fix and Flip Loans in Arizona. In other cases, you could use a personal loan, a loan from family or friends or even a home equity line of credit on your personal home. Other real estate investors partner with someone who will do nothing more than provide funding while they do the work on the house flipping.
A Professional Loan
If you have created a business to do your house flips, then you might also be able to secure a small business loan to use for funding down payments and other expenses. You could also secure a business line of credit that would allow you to keep the credit available for future purchases. Hard money is another option that is very popular for Fix and Flip Loans in Arizona. These are short term loans that are offered by private lenders. The loan is secured with the property that you are purchasing rather than your personal creditworthiness. Because hard money is asset-based, these loans are much easier to qualify for and will fund in as short as a week or two. Many borrowers also like to work with Arizona Private Money Lenders because they are able to customize the terms of the loan to best meet their specific needs.
Do Your Homework
There are many different options available to fund a house flipping business. And not all of the loans are going to be from a traditional lender or even from a professional lender. Using your personal resources such as friends and family, as well as your personal credit can often be enough money to get the down payment for your first flip property. Then you just need to be diligent and remain on schedule to complete the property and sell it to fund your next fix and flip.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
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 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.