House flippers are some of the hardest working and most opportunistic people in the real estate industry. The talent it takes to evaluate a home, find the funds to repair it, and then flip the property for a profit can be staggering to consider. Yet, all the talent in the world won’t overcome a lack of financing.
Today, we want to underscore how hard money loans can help you grow your house-flipping business.
Gain Flexibility While Flipping Houses
If you are looking to become more than a one-property fix-and-flipper, you are going to want to familiarize yourself with hard-money loans. To grow your company and extend your reach into the market, borrowing capital will give you the means to purchase and restore multiple homes. If you work intelligently with a larger loan, you can improve your cash on cash ROI, allowing your money to work for you while you work on the homes that will fund your retirement.
Not only will you gain more flexibility as you flip houses, but your company’s projected growth will exceed that of a cash-only business. The more you put into your company, the more you will get out of it. Pretty nice, right?
Better Leverage Your Finances
If you are serious about growing a house-flipping business, you need to rely on more than just your own strict cash reserves. What does this mean in a practical sense? For someone who moves beyond their own capital reserves, acquiring a loan will allow them to leverage their cash, building bigger projects as the years go by.
As an example, let’s say that you borrow $100,000 to spend in your market. This will allow you to fix and flip three properties, realizing a net return of $50,000. Now you have $150,000 to spend in your market. Repeating this process will allow you to scale your business efforts to the growth within the market that you are experiencing.
Continued growth is integral to capitalizing on hot markets. With Arizona’s real estate industry primed for a huge 2021 and beyond, properly scaling your hard money loans to your anticipated efforts can lead to serious success. Remember not to outkick your coverage and only to chew what you can handle swallowing. There is no point in failing from overworking yourself.
Grow Your Business With Hard Money Lenders AZ
In March 2020, Arizona saw its home-flipping market reach an 8-year-high. As the market continues to grow and improve in the post-COVID landscape, Hard Money Lenders AZ makes itself available to savvy fix-and-flip investors looking to acquire hard money loans.
Hard Money Lenders Arizona is based out of Phoenix where it focuses on providing private funding experience in every aspect of real estate. From refinancing and bridge loans to your next fix-and-flip project, Michael Iuculano and the team can support your business endeavors.
Contact Hard Money Lenders AZ to discuss your project, today!