Fix and Flip Loans in Arizona have a reputation as being much easier and faster to secure because they are being processed by a hard money lender rather than a traditional bank or lender. But the Hard Money Lenders in Arizona are still in business to make money and will want to see some documents to know that the deal is legitimate and that you have the knowledge and ability to complete the project. Having the appropriate documents ready for your lender will demonstrate professionalism and can be a great help in creating a successful long-term working relationship.
Most Hard Money Lenders in Arizona are going to charge a small fee of a few hundred dollars to process your application. This might be a fee that is waived after you have worked on several projects together but that is up to each lender. You will also need to provide proof of your credit score, which should be at least 550. A better credit score is likely to land you a better interest rate. In addition, the lender will want to see a few months of personal bank statements to see that you are responsible with your money and are paying your bills.
Fix and Flip Loans in Arizona represent a greater risk than many Hard money loans in Colorado because the property is likely to see a lot of demolition before it is improved. Lenders like to know that the borrower has experience in the industry and will be able to complete the project on time and on budget. To put the lender’s mind at ease, this is a great time to submit a resume of sorts to demonstrate your level of experience. Creating a document to include your previous real estate purchases and fix and flip projects will always work in your favor.
Some fix and flip projects are very basic while others can be very in-depth. Creating a document to illustrate the scope of work that you are proposing for the project will assure the lender that you have a legitimate plan and also that you have a plan of action to improve the property and the property value. The scope of work can also be helpful when determining the length of time needed for the loan and the potential for an increase in the property value.
Fix and Flip Loans in Arizona also sometimes hinge on the contractors that you will be working with. Having bids from reliable contractors is a strong indication that the work will be completed in a timely and professional manner. And having a purchase contract will prove to the lender that you have begun the process of making the purchase and that the loan money will, in fact, be used for the property that you have listed in your loan application. Having this packet of materials to submit with your loan application can make the process even faster and more stress-free.
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.