If there’s one constant in the rehabbing business, it is change. Adapting to these changes is what can make or break a project; learn how to use rehab loans from hard money lenders to keep your refurb project on target.
Hey, we’ve been there, too — you’re on schedule and under budget on a refurb and the universe has other ideas. You find asbestos or lead paint. An act of god threatens to derail a major project. A redesign ends up costing more than you anticipated. You’re out of cash and you’ve got deadlines and bills looming. If you can finish the project, you can sell for a profit and be out of the woods and onto the next one.
The banks might not want to deal with you at this point, especially if you’re already struggling to pay off what you’ve borrowed, or you don’t have near-perfect credit and an unblemished financial record. You could throw up your hands, give up on the rehab or leave projects unfinished and sell (possibly for a loss).
Or, you could get a hard money rehab loan.
Hard money lenders use private money to fund projects they care about. Unlike the banks and big financial institutions, these lenders aren’t hand-tied by major federal regulations. If they think the project has merit, they can get the money and, since there’s no complicated underwriting, they can often do it in just days or weeks.
With hard money loans, you put up a property or asset as collateral. With a loan for a fix and flip, this could be the property you’re working on or it could be an unrelated property. It’s a simple transaction; if you can use the money to finish your projects and sell your flip for a profit, you pay off the loan and pocket the gain. If not, the lender has an insurance policy. In essence, you’re betting on yourself.
If you’re looking for a rehab loan in Arizona, you’re already in the right place. Level 4 Funding has loans that can cover up to 90% of the cost of the property and up to 100% of the rehab costs. Interest rates are as low as 5.99% and terms can be as few as 3 months and as long as 60 months. Click the chat button, give us a call or shoot us an email to get your project funded.
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 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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