One of the worst mistakes and fix and flip investor can make is not having the funds to purchase and rehab the home up front. It’s risky to rely on a previous flip to sell for enough to fund your next flip that’s already in progress.
Using a hard money loan can give you peace of mind that you’re not going to run out of money before the job is completed. You most definitely don’t want to be half way through the rehab and realize you can’t afford the rest. That’s the easiest way to stall a flip and lose money, lots of money.
When you’re planning your flip you want to budget for things to go wrong. You may want to just replace an out-dated sink, but when the plumber begins the installation they may find mold or other plumbing issues that will need to be fixed. It’s rare to rehab a home and not have unexpected expenses. It’s the nature of the beast!
Your Arizona Hard Money Loan should allow for those unforeseen circumstances. The last thing you want to have to do is take out a secondary loan because you can’t cover the rehab with your first round of funding.
If you have proper inspections done you should be able to have a good idea of what you’re in for beyond the typical aesthetic upgrades. It’s an up front cost that will most definitely pay off in the long run.
Having to sell a partially completed home is worst case scenario. You’re fighting a losing battle trying to find someone willing to take on a partially completed project and that takes out a huge chunk of buyers who will only purchase move in ready homes.
As stated above, trying to secure a secondary loan can be difficult, and sometime impossible. Lenders don’t want to be second in line as that puts their funding at risk.
Speak with a lender about a Arizona Hard Money Loan and discuss having your project funded, with a little wiggle room so you can complete a successful rehab project and grow your investment portfolio!
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.