The real estate market has been greatly influenced but the popularity of some fix and flip television shows. For many years, property rehabs were a small segment of the industry. But now that certain shows have presented this business as a get rich quick plan or a glamorous career, there are huge numbers of people trying their hand at fixers uppers and also needing Fix and Flip Loans in Arizona .
Most new flippers are eager to apply for Fix and Flip Loans in Arizona because they have heard that the process is fast and easy. But that is about all that they really think they know and need to know about the process. The truth is that no hard money lender is in business to lose money, so there are additional criteria that borrowers must meet to secure Fix and Flip Loans in Arizona .
The first big misconception that most borrowers have is that their credit score will have no impact on their ability to secure a loan. And while a great credit score is not critical to getting the loan, a terrible credit score will certainly cost you. A bad score is likely to increase your interest rate quite a bit, and also could lead to the lender offering you less money than you requested for the loan. As a rule, most Hard Money Lenders in Arizona are only going to be willing to work with a borrower who has a 550 credit score or better, and some will only work with 600 or more.
In addition to a certain amount of creditworthiness, lenders want to know that a borrower for a fix and flip loan has some experience in the flipping industry. The project house is the collateral for the loan, and an inexperienced flipper can destroy the value of the property and then run out of money to fix it making the collateral pretty worthless to the lender. Two or three months of bank statements will also show the lender that you have maintained a respectable balance, and are not trying to work on a shoestring budget.
Hard Money Lenders in Arizona do not have a huge staff of subordinates who are filling their days with paperwork and loan document creation. The lenders want to know that you are seeking funding for a legitimate deal that you are working on. So they ask that you show the purchase contract from the seller and also the contractor bid that you have gotten for the work that will be done to the property. These not only show that the deal is legit, but they also show that you know what you are doing and are ready to proceed with the project once the loan is funded. Though fix and flip deals are not really as cool as they look on television, they can be a great way to make some money in the real estate industry if you are willing to do some work and make it happen.
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.