Arizona House Flipping Loans: Risks and Benefits of Equity Partnerships
When it comes to financing your next flipping project, you may be wondering about the difference between equity "partnerships" and standard Arizona fix and flip loans . Before you set out on your next flipping project you need to know what the cost of financing will be. The cost of capital basically determines the profitability of your project. Loans imply fixed payments. With loans you calculate the cost of financing by adding up the loan fees and total interest payments, you then subtract this cost from your projected profits. The terms of a standard loan are spelled out in black and white, the only variable in this case is how long it will take for your rehabbed home to sell. Equity partnerships present more uncertainty. When it comes to equity partnerships, there is a lot of risk versus standard house flipping loans in Arizona In equity partnerships a specific amount of money is given for a particular percentage of ownership in the property. In this case, the investor rec...