While everyone is aware the housing market is rougher than rough, even rougher than sandpaper toilet paper, there’s still a niche market where buyers are obtaining property, fixing it up and selling it for a profit. The only problem with this plan is that most banks and mortgage companies are wary of approving such Mortgages. First of all, they want more long-term buyers out there and not some business-like entrepreneur that bends over backwards “experimenting” with tiling and painting and roofing. Second, most banks and mortgage companies are wary of approving anyone period. The market is so beaten and trodden down, there’s hardly any chance worth taking a risk for, because they’ll just get further and further in debt.
So one of the primary solutions is to just choose a private money lenders Arizona. These guys hardly do background checks or credit checks because they’re fully aware your plan is just to flip a property quickly. Since you’ll only be paying on the interest, doing nothing to the equity of the property really, it makes sense for everyone involved.
These things are also called asset-based Mortgages or bridge Mortgages. However, asset-based lending is a term more frequently used in conjunction with commercial real estate financing as opposed to simply hard money which is used for residential as well as commercial finance.