Choosing an investment property is the first step to obtaining funds from a Colorado hard money lender. Here are some criteria you should be looking for to make a good selection.
Fixing and flipping is a great way to get cash as an investor. But how do you know which properties to choose? Many novice investors will make mistake when they choose their first properties and lose money on the project. Here are some things you’ll want to look for before applying to a Colorado hard money lender for your property!
As an investor you’ll want to know about the area you in which you want to make a purchase. It’s not a good idea to flip the best property in a neighborhood because the comparable properties in the area will bring your sale price down. You’ll want to choose a property that has good potential, but will be brought up in quality to match those around it to get competitive offers once it’s listed.
To go along with what we said above, you also don’t want to pick a property that’s going to be a money pit. You want it to be able to bring it up to the quality of its surrounding homes, but if that’s going to take far more money than you have, it’s going to dig you into a hole that can be hard to crawl out of. It can be easy to get sucked into a property that has ‘good bones’ and has the potential to be great, but if it’s not fitting into your budget then move along to the next one!
Another appeal to some investors is a unique property, meaning it’s different from the homes around it. Unique can be beneficial to a certain extent, but it can also deter buyers. Unique homes can cater to a certain audience and make it harder to sell. You’ll want a home that feels livable and appeals to the masses.
Once you’ve selected your investment property it’s time to put together your pitch for your Colorado hard money lender. That will include information like your rehab plans and finances for the remodel.
When you pitch your plan to a Colorado hard money lender you’ll be more likely to be approved if you’ve considered things like the area (schools, shopping, etc.) and the comparable homes in the neighborhood. The more prepared you are to present the information, the more sound your investment looks to your lender.
Level 4 Funding LLC
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Hard Money Loans
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Arizona Tel: (623) 582-4444
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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.