Recent television shows portray house flipping as a fairly easy way to make some big money in just a few weeks. But as with most things, what you see on television and what happens in real life are not ever very similar. But armed with some good information about Loans to Flip Houses in Arizona, you can begin to learn about the process and what elements are critical to making a profit.
It is very true that picking the right property is important, but it is equally as important to pick the right loan to buy the property. If you are not familiar with Loans to Flip Houses in Arizona, then you could end up signing up for a loan with a very high-interest rate, a huge list of added fees and a repayment schedule that will be impossible to meet. All of these terms are very important and should all be in writing so that you can calculate the total cost of each loan that you are considering.
Because a private lender is funding the loan, you will have the opportunity to make requests regarding the terms of the loan. This can mean getting a longer repayment period if you believe the renovation will require more time, or even a variable payment amount if that will help you to begin funding the repairs. But the critical part is that you understand each aspect of the loan and what you need to do to keep the loan current and in good standing. Seeking a lender who specializes in working with borrowers who are new to the flipping business can be beneficial as he or she can walk you through the entire process and answer any questions that you might have.
As with any business, it is much easier to work with someone whom you know and are comfortable with. And as you are hoping to turn house flipping into your career, it only makes sense to find a lender who you can work with in the future. Having that solid resource who you trust will make each new deal go just a little bit smoother. So be honest when you are just starting out, ask questions and work to create a long-term relationship which will benefit both you and the lender.
No new business will run perfectly, so it is always important to have a backup plan. Never get yourself so far in debt that you are completely strapped for cash. Having a reserve will allow you to cover an extra loan payment of two if needed without destroying the relationship that you have created with your lender. And it will also greatly reduce your stress level when you find that your renovation schedule is lagging just a bit. Understanding how to use Loans to Flip Houses in Arizona is very important to the entire process and to your financial success.
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.