An Arizona Rehab Loan may be the best answer for you.
The term ‘Arizona Rehab Loan’ can be described as an umbrella that covers several types of loans, mostly concentrated on three things: the purchase price of the property; the costs of needed renovations; the market-ready value of property following the work. In most instances, re-sale is done within a 12-month period to repay the original loan. Ideally this is done at a profit to the borrower, who now has experience, field contacts and money in his pocket. These loans also are dispensed under various titles that have one of more nuances or conditions that differ from each other.
Even the lenders—both hard money and private –have their varying terms and conditions that set them apart despite the titles being used interchangeably, both in print and conversation. Private lenders center on the borrower’s credit, collateral and their ability to repay the loan. Hard money funding sees the collateral as the first in line for payback in case of a default by the borrower.
Some examples of these types of funding, along with the usual type lender, are described below.
Hard Money Lenders are commonly used in this type of funding.
3. Bridge loans (generally done to cover interim financing needs) are pretty well defined by what the borrower wants to do with the property and cover several areas, besides the usual types, including ones for owner-occupied residential properties when the borrower is in most instances using the funding to repair their personal residence. Non-owner occupied loans are generally funding used to repair rental property that is currently occupied by tenants. Commercial property can fall into this category as well when the funding applicant will be using money to repair their own business or another for re-sale later.
This funding is generally handled by private lenders.
When pursuing an Arizona Rehab Loan, try to find a lender that can and will cover costs of purchase and repair in single package. This saves the time and effort put into applying for a second loan later on and you will already know the individual or company that you originally work with in the beginning. Smaller local lenders can work well with unique situations and have more flexibility, but larger firms have access to more funding.
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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.