3 Things to Know Before Approaching Residential Hard Money Lenders
If you’re a newcomer to fix-and-flips, residential Arizona Hard Money Lenders can be your best ally. Learn a bit about what they’re expecting before you apply to ensure you get approved.
1. Credit doesn’t matter, but experience does. One of the reasons why working with residential Arizona Hard Money Lenders is awesome is that your personal credit score doesn’t usually matter. You can have rotten credit and still get a loan to finance your flip. Newcomers can get financing as well, but the terms you’re offered are likely to improve as you gain more experience. If you’re cash poor but idea rich, plan to start off on smaller projects first, then build up to bigger and more expensive ones after you’ve demonstrated you’ve got what it takes to be successful.
2. You’re going to have to have some of your own cash. A great broker can work miracles and find alternate ways to get you financed, but you’re likely going to have to have some of your own cash in the deal, even if it’s just to cover the cost of getting financing set up. If you’re struggling to scrape up your own cash, focus on finding one really good deal; a home that’s being sold for far less than it’s worth. Sellers can become especially motivated to slash prices during divorces or when they’ve gotten in over their heads with projects. These situations may be your best bet if you’re trying to break in with minimal cash.
3. You need to be 110% certain you won’t run out of cash. Always leave room in your budget for unexpected expenses. Sometimes newcomers are eager to get going and work with a tight budget or, worse yet, assume they’ll be able to get additional funding after the project gets underway. In reality, it’s really difficult to get extra funding partway through and most projects that run out of cash simply stop.
Your Team Wants You to Be Successful
Generally speaking, residential Arizona Hard Money Lenders are people just like you, but they’ve grown their wealth enough that they can begin investing in projects like yours. Their approach to lending is different than most. What they care about more than anything else is that you’ve done your diligence and have the ability to carry out a successful project. When you work with a seasoned broker, he will also be part of your team, helping make sure you’ve got everything in order and that what you’re bringing to the table is presented to investors in a way that gets them excited about what you’re doing.
If you know how to evaluate a good deal and need some cash to get going, HMLs can lend a helping hand.
While you don’t need to have good credit or a ton of cash to get started with fix-and-flips, you do need to have the right mindset and do your homework before jumping in. If you’re set on those, talk to an established broker who will help you get the best terms possible from residential Arizona Hard Money Lenders and get you started on the path to wealth.
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.© 2016 Level 4 Funding LLC. All Rights Reserved.