How to Get Started with Arizona Construction Loans

If you’re building a new home or business, you’ll be looking for Arizona Construction Loans rather than mortgages. Get to know the basics beforehand, so you can move forward without delays.

Contrary to popular belief, getting approved for Arizona Construction Loans isn’t necessarily difficult, but the process is different than going to get a traditional mortgage. People use them all the time when they’re building new structures or doing major renovations, and you don’t need to have perfect credit or be a builder to get one.

Before you attempt to get approved, though, you’ll want to make sure you have three key things in place; the plans, a comprehensive budget, and permits. In other words, if you aren’t a builder or a contractor, you’ll need to have one on your team before you get started. All aspects of the build will need to be outlined with estimates from the contractors or subcontractors who will be handling each task. The plans will also be necessary to get permits, and the permitting process usually takes a few weeks by itself. Having an experienced contractor pays off here because someone who routinely works in your area will know exactly what the review process entails and what inspectors are looking for, so permits are issued promptly. However, the permitting process can stretch out longer if there are questions or if the project is especially complex.

You’ll also want to take some time to get your finances in order beforehand. Depending on how you go about getting financing, you’ll need to address how you’ll make a down payment, check your credit score, prove financial strength, and demonstrate that the build will be a financial success.

Find Out What Form of Lending is Right for You Before You Begin

It’s difficult to get Arizona Construction Loans through banks because they don’t make a whole lot of profit off them, and so they heavily restrict who they’re willing to lend to. You have to be an incredibly low-risk borrower in order to get approved, and even then, the terms might not be great. That doesn’t mean a bank won’t help you, only that it’s worthwhile to explore multiple funding options before your start paying for plans and permits out-of-pocket.

If banks won’t help, you can get your project off the ground with hard money.

One alternative to bank Arizona Construction Loans is hard money. With this method, you’ll still need to have some of your own cash in hand to get started, but you can get up to 90% LTV. Best of all, you can make interest-only payments on the loan during construction, and then either sell the property or approach a bank for a conventional mortgage after the build is complete, when they’re much more likely to help you out. You’ll still need to have plans, a budget, and permits to qualify, but things like your personal credit are less of a concern with hard money, so it’s much easier to qualify and get your project moving forward fast.

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

111 Congress Ave | Austin | Texas | 78701

About: 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.

How Investing in Deeds of Trust Passes the 4 P’s Pitfall Test

The four Ps of successful investing has been getting a lot of press lately. Investing in Deeds of Trustproves to be a solid strategy across them all.

If you haven’t looked into Investing in Deeds of Trustbefore, you’re in for a wonderful awakening. With this form of lending, a developer working on a real estate project borrows funds from someone, and that investor (you), are listed on the deed of trust as the lender. The investor receives interest payments from the borrower throughout the term of the loan and when the term ends, the bower pays off his balance in full. Most of these are short-term projects, like fix-and-flips, so the principal balance is only tied up for a matter of months and the investor is free to reinvest the money immediately after the balance is paid. The returns are varying from 9-29%, with an average of about 12%. Considering that CDs start out around 2% and the average stock return is somewhere between 5-7% right now, it can be the smartest way to increase your wealth.

In terms of investment portfolios, the four Ps include price, performance, poor diversification, and paying attention. Price relates specifically to the cost you pay to invest. Whereas there are all sorts of middlemen and fees involved with other forms of investments, all payments from the borrower are typically made straight to you.

There’s nobody scraping money off the top of your monthly returns. Performance, on the other hand, relates to what you’re earning, and takes into consideration whether there are other vehicles that might get you better returns. Frankly, 12% is hard to beat.

The final two Ps, poor diversification and paying attention, are up to you. It probably doesn’t need to be said, but any investment strategy should involve diversification, no matter how secure it seems. You’ll also ultimately be responsible for monitoring your investment and making sure things stay on the up-and-up, but if you’re working with an experienced broker, he or she can walk you through how to address any issues that come up.

Avoid Pitfalls by Being in First Position on the Deed of Trust

When people have a bad experience with Investing in Deeds of Trust, it’s usually because they didn’t get listed first. Maybe they accepted second position or contributed to a pool of funds. In these cases, it’s harder to swift take action if a borrower defaults as all investors must be in agreement on how to move forward. As first position, you exclusively make that call, and when the contract is structured well, you still come out on top.

Know how to evaluate a good deal or work with a pro who can lend a helping hand.

There’s risk with any strategy and Investing in Deeds of Trustis no different, four Ps or not. Especially as you’re just getting into it, it’s essential to ensure that your contracts are structured right and that you’re being matched with solid deals, so you’re protected and earn more for your help. This is where brokers come in.

However, many investors choose to continue working with the same broker continuously for years because a great one will keep finding new investment opportunities for you to tap into, allowing you to grow your wealth at a steady pace.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis
Dennis Dahlberg Broker/RI/CEO

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.

Need an Arizona Construction Loan to Build Your Dreams?

An ‘Arizona Construction Loan’ isdesigned just for development. Read on and let’s find out if they are what you need.

An Arizona Construction Loan, commonly called a ‘self build’ loan, is actually two different loans; the first part will cover your project’s upfront costs. You will pay interest-only payments while your apartment building, string of houses, office complex, etc. is being built. Following this period, the principle will have come due set up in monthly payments on what is termed a permanent loan. The quicker you can finish the construction itself; the less interest has to be paid i.e. the cost of your loan will be smaller.

And speaking of interest, these loans’ rates of interest can go up and down like the temperature, depending on the market interest rates. Normally the amount is the Prime rate with one or two percent tacked on.

A private lender, while unlike traditional lenders in a number of ways, is still going to want to see your books and plan of operation. Once you have chosen your lender, have everything you need in order to avoid delays, get the end result you desire (the money you need) and prove you’re a professional who isn’t wasting the lender’s valuable time.

You will need to account for the following things in order to present the entire cost picture:
1. hard costs: materials and labor needed.
2. land costs: purchasing land and property, occasionally termed ‘soft costs’.
3. soft costs: architect’s designs, taxes, insurance, appraisal(s), permits, etc.
4. contingency fund: reserve funding that is used for interest payments
Generally for an Arizona Construction Loan, private or hard sources of funding are easier to obtain than traditional or government sources. Why is this true?

Banks and other conventional lenders will run your employment history, credit record and how much you already owe (debt-to-income ratio) through a fine screen and check every detail. A past foreclosure, late payments on a loan, even self employment with a good record–all these can stop a conventional application from going through. The time element figures in also since banks and other similar lenders can take 30 days or more to fund your loan once application is made.

Hard money looks at collateral value and your ability to repay a loan more so than traditional lending institutions. This secures the lender’s money since if you cannot repay, the collateral can be sold to cover their losses. Other securities for the lender are a down payment, which is often required, and higher rates of interest.

Often these lenders do case-by-case evaluations and determine the loan amount based on each individual application.

Time is of the essence in the majority of cases and most private lenders make decisions in a very short time.

Sometimes approval and funding can be completed in as short a time as two days, with no credit check or tax information required.

If you think an Arizona Construction Loan is for you, start building your portfolio first, then find a lender who can aid you in creating something more substantial than paper and pictures.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis
Dennis Dahlberg Broker/RI/CEO

27 January, 2020 19:25

[titleWhat Does Trust Deed Investment Mean?]

Investors have many options when it comes to where they put their money. Gold, the stock market and mutual funds are popular investments. We all know about these types of investments because they are everywhere. However, you may have not heard of trust deed investing.

Although Trust Deed Investinghas been around for hundreds of years, it’s not one that is advertised. Trust Deed Investingis investing in loans that are secured by real estate. A loan made with a trust deed investment is similar to a home mortgage loan. The main difference between these two loans is that there are three parties involved in a trust deed: the trustee, the lender, and the borrower. The trustee is the holder of the deed while the loan is being paid. The lender is obviously the one financing the loan. And, of course the borrower is the one who owns the property being put up for collateral and borrowing the funds.

There is also a promissory note that clarifies all the terms and conditions of the loan. In case the borrower defaults on the loan, the trustee is the one that would begin the process of foreclosure. The difference in a conventional mortgage and a trust deed loan is in a mortgage, the lender has to go to court to begin the foreclosure on the property being held as collateral.

Trust Deed Investingis popular, with people who know about it, because it pays a high rate of return and the investment is secured by real estate. Typically, once the loan has been made, the rate of return won’t change. You may invest in a trust deed that has a term of 18 months and you would receive payments for each month for the interest the borrower is being charged.

Trust Deed Investments

Investing in trust deeds basically means you are loaning your money against collateral. The collateral, which is real estate or land, protects the lender’s investment. It is, however, imperative to consider the value of the collateral. It is also crucial that a trust deed investor reflects on the amount of money they are loaning in comparison to the value of the real estate that is securing the loan. The underwriting process typically handles this, however it is always a good idea, as an investor, to do your homework and pay close attention to the details.

If you are looking to invest in something with fast returns and pays a high rate of return, Trust Deed Investments may be for you.

Typically, the minimum investment for Trust Deed Investments is around $10,000. However, some firms require a minimum of $100,000. The exact amounts will vary from broker to broker.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis
Dennis Dahlberg Broker/RI/CEO

Top 3 Tips for Getting First-Time Arizona Rental Property Loans

Getting Arizona Rental Property Loans as a first-time investor can be a challenge. With a little outside-the-box thinking, you’ll increase your odds of success.

We’ve come a long way since the market crash. Home values are climbing virtually everywhere and interest rates are low, making it a great time to purchase investment properties. However, if you’ve started looking into Arizona Rental Property Loans, you’ve probably noticed they’re not easy to get, particularly if this will be your first investment property. The good news is, you can still get financing, but you’ll have to be creative to make it work.

1. Have a sizable down payment. If you’re attempting to get bank financing, 20% is still the norm for owner-occupied homes. Once you get into investing, banks start to look for at least 25% before they start offering favorable terms. Owner-occupied borrowers can also sometimes get a second mortgage to help them cover the 20%, but it’s very difficult to get one for investment properties.

2. Demonstrate strength. Lenders look for financial strength in three key areas. Having a good credit score is one. For traditional lending options, you’ll likely need to top 740 to get good terms. Lenders will also consider your reserves. They’ll want to be sure you can afford to make good on the payments even if your property is vacant for a period of time. The loan-to-value (LTV) matters as well. This is the amount of the loan compared to the value of the property. For example, if you’re taking out a $60k loan on a $100k property, your LTV is 60%. The lower the LTV, the more likely you’ll be to get financing and good terms.

3. Skip the big banks. The reality is, most people looking into investment properties aren’t going to be able to bring a big down payment or demonstrate strength in the ways big banks want. Chances are, you’ll have more luck with a neighborhood bank or by going with some form of alternative lending.

Hard Money Can Make Your Investment Dreams Come True

One form of alternative lending is hard money, and it works well for Arizona Rental Property Loans, even if you’re a first timer. Hard money can be used to purchase properties for short-term renters, such as those listed on Airbnb or HomeAway, on traditional homes, and on multi-unit properties too. While LTV still comes into play, things like your credit score matter less, so it’s easier to qualify.

Once you’re successful, you can move onto a conventional loan with greater ease.

Hard money Arizona Rental Property Loans aren’t a permanent solution, but they’re a great way to get your foot in the door and start generating income. Many people use them to purchase fixer-uppers, make repairs, and get tenants in before going for a conventional loan. By approaching it this way, you can build up your cushion for the 20-25% down, increase your reserves, and increase the value, so you’re a strong buyer with cash ready. If you’re ready to get started generating a steady stream of income, consult with a broker who works with hard money.

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

111 Congress Ave | Austin | Texas | 78701

14 January, 2020 06:45

[title: Can You Calculate Your LTV? An Easy Guide to Real
Estate Math]

Here’s how to do the math on your next hard money investment so you know if it’s going to be the right choice for you.

Is that home going to be a cash cow? Will that fix and flip line your pockets for your next project? You may not be a big fan of math, but you can’t be a great investor without knowing the basics to real estate calculations.

Let’s go over some of the big numbers you’ll need to know for an investment!

Loan Amount

This one is pretty easy to determine and the most important one to know. How much are you going to be able to put down on the home? That is going to feed into the next equation because to get an Arizona hard money loan the lender will look at the loan to value. Are you going to need higher than 70% LTV to make your deal work? It’s important to know this going forward because different lenders have different max LTVs that they’ll loan on.

LTV – Loan to Value

This calculation is pretty simple! You’re going to divide the amount you’re borrowing by the appraised value of the home. To get the appraised value it’s good to speak with someone keen to real estate if you aren’t familiar with home values in the area.

Here’s an example: If you’re investing in a home worth $100,000 and you’re going to borrow $90,000, you’ll have a LTV of 90%. Now just add the data for the home you’re interested in and see what your LTV is, which is an important number to know when securing a hard money loan.

Hard money lenders like Level 4 Funding will often times go up to a 90% LTV, depending on the project. If you’ve got a proposal for an investment opportunity that you think is going to be a money maker, needs to happen quickly, or you’re worried about getting funded through a traditional lender, an Arizona hard money loanmay be just what you need.

Call us today to schedule an appointment to present your proposal and get started on your next project in as little as a few days!

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis
Dennis Dahlberg Broker/RI/CEO

3 Reasons Commercial Hard Money Lenders Are Better Than Banks

There’s a certain connotation associated with commercial hard money lenders. The reality is, there are certain times when it’s way more advantageous to approach an HML over a bank.

Google auto-suggest is supposed to be smart, but it does something really stupid when you start running searches for “commercial hard money lenders.” No joke, the search engine giant will automatically append “are bad,” to the end of the phrase and offer it as a leading choice. That’s because people are actively searching for reasons not to work with HMLs, but it’s not why you’d think. It’s because people see the terms that they’re offered and start looking for a catch. There’s no catch. There ARE times HMLs are better than banks. A few are outlined below.

1. They finance when banks won’t. Most people don’t discover alternative lending until after they’ve been denied by a bank. Whereas banks have a whole list of criteria they use when evaluating a person’s creditworthiness, HMLs are more interested in the quality of the investment and the structure of the deal. They fill gaps left behind by traditional lenders.

2. They know your niche. Each HML chooses his niche and it’s typically based on the business experience he has. In other words, you’re getting funded by someone who has done what you’re doing. That means the person genuinely understands how your niche works and how to evaluate a good deal within it. Banks don’t usually get that in-depth.

3. They can get you your money quicker. There’s a lot of competition for investors in the commercial space. If you don’t have cash ready to go quickly, opportunities vanish. HMLs don’t have to deal with the same level of red tape others do, and so you can get cash in hand in a matter of days, versus the weeks or months it takes to get financing through traditional channels.

Programs Offered Are the Real Deal

Even though the programs and terms offered by commercial hard money lenders versus banks differ in many ways, the security is matched. For example, there’s still a title process, escrow accounts, and legal protocols to follow. Borrowers have a great deal of protection. The biggest difference is that you’re using an asset as collateral, which is the same thing banks often do when their traditional packages fall short. However, HMLs have greater flexibility because it’s usually one person or a small group of people making decisions as opposed to following rigid corporate protocols. That’s the very thing that gets deals off the ground quicker too.

Get expert advice before you sign on any loan.

Whether you’re planning to work with commercial hard money lenders or anybody else, it’s important to talk to a lending expert who can walk you through the best options for your situation. A broker can help ensure you have clear expectations going forward and make sure you’re getting the best rates possible, so it’s easy to decide the best way to borrow and feel confident in your decision.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis
Dennis Dahlberg Broker/RI/CEO

A Tale of Arizona Land Deals

Sometimes I think I ought to just quit the real estate field altogether, Tom Biggers thought as he arrived home after what should have been a really good day closing on his Arizona Land Loan. He wondered idly if the job his cousin had offered him in wholesale office supplies was still available.

He poured a straight shot of bourbon and sat down in his favorite chair. Should he have seen this coming although no one mentioned it? After going to three banks and two mortgage companies, he had found a private lender, who said, “We can do this—my company handles land deals. Our application is online, so you can fill it out at home. You need to do—“

That night he had looked over the rather lengthy list of expenses that he needed to figure in to meet funding needs. They included attorney’s fees, insurance, appraisal(s), title search, bond fees and surveyor’s costs. The property already had its utilities set up and they had been done in the past year.

This made things easier, his lender had explained, utilities counted toward development. Raw land—nothing on it except trees and grass –was more difficult to get money for and the loan terms were stricter, too. Property with some development in place was easier to acquire funding for and repayments terms were easier. If he had had plans showing future development, he would have had still better terms, his then-Arizona Land Loan would have been deemed a Arizona Construction Loan and even quicker to obtain under most circumstances.

Everything had gone smoothly—his credit score was only a few points above minimum, but it met basics. A deed for a small office building he owned in the better part of town was accepted as collateral. When the down payment was listed under 40 percent of the loan value, he made sure the money was available, despite it having punctured his savings account.

Signed loan papers in hand, Tom had driven over to the property owner’s office to inform him that he had the money needed to make the purchase. “Well, Mr. Biggers, I can see that you really want the property,” Richard Halleck said. “But I had my appraisers in yesterday—you know how real estate values are, up and down all the time. The property values in the area have jumped 10 percent in the last week. I’ve got another buyer who has got the money I’m now asking for. But I’m going to give you a week to come up with it since I talked with you first. You be in here by Friday and we got a deal.”

He suddenly remembered the folder for bridge loans in the information parcel his lender had given him. I’ve already got most of the money, he thought, why shouldn’t I get the rest of it from these people? The banks were not an alternative, he was certain.

Thursday afternoon Tom found himself signing the papers for a small commercial bridge loan that combined with his original Arizona Land Loan gave him the total Halleck wanted. Better still, while walking over his new property late Friday afternoon, two different passersby stopped and inquired about using it as an advertising lot since it was hillside land with a good view. Things were good, he thought, he had his property and he had lending contacts for use in the future.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis
Dennis Dahlberg Broker/RI/CEO

Harvard Study Shows You’re Approaching Private Money Lenders in Arizona Wrong

You want to put your best foot forward when approaching Private Money Lenders in Arizona for funding, but research out of Harvard Business School suggests most people are approaching business situations totally wrong. Catering to people and bragging will not help you get ahead, but authenticity just might.

Prepare to be mind-blown. A collaborative study including researchers both Harvard and Wharton suggests you’re approaching business deals wrong, but then again, most of us are. The study looked at two distinct areas; how people view humblebragging and how they view catering. Both techniques are routinely used in business as a form of self-presentation. People use them as tools to make a good impression, and most people believe they’re effective at getting others to like them.

To test the impact of humblebragging, researchers had more than 100 students answer a fake job question regarding their biggest weakness. Over three-fourths responded with a humblebrag. These are the well-rehearsed lines we’ve all been trained to give in interviews. For example, “I’m a perfectionist and it can be irritating,” or “I’m so driven that I sometimes forget to take breaks,” or “I graduated Ivy League, so my peers can sometimes be intimidated by me.” You probably have your own humblebrags as well; for social media, business meets, interviews, and so on. Unfortunately, these kinds of phrases actually sends the message that the speaker is not self-aware and puts the individual in a less favorable light. In follow-up studies, the researchers discovered that people prefer outright braggers and even complainers over humblebraggers.

The group also tested how catering to someone impacts likability. The situation here, however, was just like what people do every day with Arizona private money lenders. They tested how entrepreneurs were received when they approached investors and asked for funding. In some cases, the entrepreneurs catered to the investors by demonstrating that their interests were aligned or by trying to behave in a manner they felt the investors expected. Although most people believe that catering will make them more likable or trustworthy, the inverse is actually true, according to the study. Those who catered were evaluated more poorly than those who did not.

You’ll Be More Successful if You’re Authentic

Regardless of whether you’re approaching private money lenders, an interviewer, or even your friends on Facebook, people prefer that you’re authentic. Being authentic, in spite of any flaws or shortcomings, may actually be the thing that lands you your next job or gets your next deal funded. That’s because people can see through your attempts to present yourself a certain way and it brings everything else into question.

Temper your bragging with self-awareness for the best results.

There are times it’s ok to brag. For example, if you’re approaching Private Money Lenders in Arizona and you have a great track record with fix-and-flips, show off your successes. Don’t hesitate to demonstrate your skills. However, if you’re asked about shortcomings or challenges you’ve faced, you’ll likely do better to give an honest assessment of yourself, minus the humblebrag.

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

111 Congress Ave | Austin | Texas | 78701

Properties You Shouldn’t Take Arizona Fix and Flip Loan Out On

When it comes to finding a property to flip, its best to buy low right? Well not exactly because there are certain properties you should never buy. Find out some details to look out for in a potential flips before taking out a Arizona Fix and Flip loan on them, so you can avoid disaster.

They say the first rule of investment is “buy low and sell high,” but when it comes to the flipping business you want to buy low, fix up and sell a property in the shortest amount of time possible.

With certain types of properties that’s just not possible, properties such as:

Risk less by not taking out Arizona Fix and Flip loans on these types of properties

First you should never buy blind, please take even the briefest of tours of any potential flip so you can look for:

• Foundation issues: If walking through a home makes you dizzy due to a dramatic slant in the floor, it’s pretty obvious you shouldn’t buy it. You should also never buy a house that looks like it was built on top of a fault line. But there are some less obvious signs you need to look for to spot foundation issues. You need to look for cracks in the wall but not just any cracks-horizontal cracks. If a crack runs horizontally it means the foundation is under considerable stress.

• Roof issues: When walking through a potential flip you need to look at the ceiling, looking for cracks, sags and dark spots which could indicate water damage. Even if there’s no outwardly apparent signs of water damage you’ll need to pop your head into the attic. Look for light, because where there is light there is rain and where there is rain there is water damage, and where there is water damage, there’s the need to replace the roof.

• Older homes with less obvious expenses: You should aim to do your walkthrough with your contractor, who’ll likely be able to spot less obvious expenses. For example, your contractor might notice that the age of electrical meter indicates a need to rip the walls apart to replace the wiring. If you don’t have a contractor, you could simply account for the age of the home, older homes are likely to have far more issues.

So before taking out Arizona Fix and Flip loans you need to walkthrough the home

Any one of these issues, foundation, roof or electrical will amount to an expenses, which could cost you tens of thousands of dollars. Not to mention the weeks and weeks it will take to resolve anyone of these problems, weeks and weeks in which you will need to continue making loan payments.

The golden rule when it comes to rehab is to spend money on things that buyers will see. Will buyers see that neatly poured foundation, that new roof, that new wiring system? Not really, so any money you spend doing these fixes is basically wasted.

If your too lazy to take a simple tour of the house do me a favor, why don’t you go into your backyard, get ten thousand dollars and set it on fire, because that’s what will be the end result if you don’t perform even this basic level of due diligence.

When combing the online listings don’t get baited in by a low sales price, buying low isn’t always right, you need to buy right, rehab smart and sell quickly. Properties with any of the above issues simple don’t meet these criteria.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis
Dennis Dahlberg Broker/RI/CEO