The housing market has been on the rise for the past year. Real estate has grown. Housing prices have risen amid the bustle of sales and demand for property. However, the growth has created a shortage of existing properties available on the market, and with a shortage of available homes has arisen a demand for more homes to be constructed.
Real estate investors dealing with the construction of residential homes have recently found spec homes to be a profitable niche, some may even argue more profitable than flipping or renovating. The latter two dealing with primarily acquiring distressed properties in order to either sell or lease. While these types of investments are not without their perks, they can become difficult at times when distressed real estate is scare. Such is the state of the current market, where fewer homes, even distressed ones, are available and demand continues to rise. Where flippers and renovators need to scrounge for available properties in lessened conditions, builders of spec homes may purchase a lot and build thus circumventing the dilemma of a property shortage.
The beauty of spec homes, and one of the plausible reasons for the increased demand for them, is that they are meant to fit the needs of various, possible clients. Where some builders may build a home for an individual client, furnish the home with specific aesthetics, and cater to an individual client’s needs, spec home builders are concerned with creating attractive, up-to-date, and cost-effective homes attract a larger audience.
Spec home builders generally need to acquire financing to further their projects. To start, a plot of land is needed to build upon. One problem with acquiring financing is that Conventional lenders such as banks typically frown upon lending solely on lots devoid of housing. Rarely are these loans acquired by builders. On the other hand, hard money lenders serve as one of the principle sources for spec home financing due to the fact that they are concerned with the value of the land in the current market and the amount of collateral given to secure a loan on a given property.
Home Financing in Arizona with hard money is quick. When the right property for building upon is available, spec home investors can pull the trigger on its purchase and rely on quick funds to secure its acquisition. Though hard money loans for spec home financing may have a higher initial rate than their conventional counterparts, it can be bridged out of once property is built. Finally, hard money lending is person to person basis, even project to project basis, lenders are there to help borrowers every step the way. For more information on spec home financing in Arizona, talk to your hard money broker at Level 4 Funding.
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.