Flipping houses involves two tangibles: a distressed property and money. It is a risky endeavor, as all investments are, but the payoff can be a highly remunerative move. If you are thinking of flipping a home but don’t have the finances there are options for you. The first move is finding the property.
Finding Property— The best tool for searching property is the Multiple Listing Service (MLS). It is a database put together that lists all the properties for sale by geographic region. Only licensed realtors have access to the MLS. If you do not have access to the MLS there are other sources with information about homes for sale. There are numerous sites such as realtor.com, zillow.com and trulia.com—and that is only a few of the sites available to anyone—for free. You can also search for listings by individual brokers. If you happen to be a cash buyer auctions can be a fruitful opportunity to find property with a large discounted price tag. However, if you need financing a hard money lender is absolutely your best option.
Conventional loans require a large down payment, usually between 20-25%. Keep in mind, that loan will only be for the property. You will still need capital to cover the expenses related to the rehab of the property. In a Arizona Fix and Flip scenario a conventional loan just doesn’t make sense.
Arizona Hard Money Loans are issued by hard money lenders. These loans not only offer easier qualifications compared to other loan options, but they also have lightning speed approval time. You can get a conditional approval in less than 10 minutes and funding within two weeks.
Where the bank typically requires at least a 650 FICO score, a hard money lender can show more flexibility with their lending requirements. A hard money lenders focus is primarily on the value of the property that will serve as the collateral for the loan and the equity the borrower has in the property. This is why a hard money lender is not overly concerned with a borrower’s credit history or monthly income.
Find yourself a lender you feel comfortable with and ask questions during your meeting. Ask your lender questions such as: are there other fees you will be required to pay, are there early payment penalties, are they a direct lender or a broker, how long have they been in the business, how often have they foreclosed on a lenders property? Get to know your lender and get the best Arizona Fix and Flip loan terms you can. Finding the right lender opens a large door of opportunity when it comes to flipping houses.
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 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.