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Advantages of Arizona Fix and Flip Loans

Real estate investors with varying levels of expertise or poor credit often look to Arizona Fix and Flip loans for financing. Acquiring an Arizona Fix and Flip loan offers several advantages over other conventional loans. While the structure of Arizona Fix and Flip loans may vary, many real estate investors choose them because you can count on fewer federal regulations and an easier overall application and approval process. In addition, these loans allow you to receive a 40% to 50% return on investment with little cash down and no other upfront fees.

The approval process for Arizona Fix and Flip loans are generally less restrictive than loans from banks. This helps reduce the chances of missing out on a great investment and ensures you can start your project right away. These loans are ideal for investors who understand the market, the renovation process, and the details of the loan agreement. Here are a few things to consider ensuring your investment is a successful flip and not a flop.

Research the Community

You will need to have a plan before the application process begins. First, you will need to find property that you are interested in. After pinpointing a property of interest, you will need to spend time doing your own research so that you are familiar with the neighborhood. When analyzing a neighborhood, it is wise to consider the school system or reputable alternative school options available. In addition, keep in mind the importance of reliable public transportation. Finding property that fits your budget in an area close to metropolitan areas with commuting options is a great asset, as well.

Calculate Potential Worth of the Property

To help determine how much the property is worth or potentially worth, consider doing a comparison of recent homes that are currently for sale or have recently sold in the area. You want to invest in property that gives you great returns after making necessary renovations. Knowing the retail value of surrounding homes and the cost of necessary renovations can help determine if the property is worth an investment. Banks are generally not interested in the potential value and often steer away from property in need of renovations. Arizona Fix and Flip loans are designed with a future mindset and are interested in what the property’s future value could be.

Assess How Long the Project Will Take

Depending on the size and scale of the project, flipping a house can often be a short or lengthy process. This makes a loan with flexible terms an important element in house flipping. Whether it is a complete fixer upper or a few minor repairs, fix and flip projects often come with a few surprises or setbacks. Arizona Fix and Flip loans, often structured with longer repayment periods, provide investors with a cushion for delays or unexpected repairs.

With flexible terms, fast and easy approval, quick funding, and low interest rates, Arizona Fix and Flip loans let investors take advantage of a great real estate market while making the fix and flip process both easy and hassle-free.

How to Make Money in Phoenix Apartments

Are you considering using a fix and flip loan for an apartment? If so, it’s essential that you develop a strategy first to ensure you are able to pay this loan off as soon as you can. Here, you can learn more about finding and utilizing the right deals, along with what you need to know to correctly value an apartment, while utilizing the various income increasing strategies to help you maximize the overall value of the apartment property that you purchase so that you are able to easily earn a profit and pay of your loan’s balance.

Before taking out a loan to flip an apartment successfully, it’s important to find the right property.

The process of finding the right apartment properties to flip is somewhat challenging. The majority of apartment buildings are being sold off-market. After all, landlords don’t want to alert their tenants to any potential changes in the ownership of the building, and as a result, they avoid posting a listing of the property for sale. Therefore, to find these apartment properties that are for sale, you should contact local real estate brokers. These individuals can let you know what properties are available.

Once you find the possible property that you can flip, you need to make sure you consider the following:

  • Is the property in extremely dilapidated condition? Is there a need for physical improvements right away? If you are able, make the improvements needed, and then you can immediately increase the value of the property and resell it to earn a profit.
  • Think about any outside factors that may increase the value of the property in the near future. For example, are there any new public amenities such as schools or hospitals ready to be constructed nearby? If yes, then you may not have to spend too much of your own money to see the value of the property appreciate.

The primary difference in flipping an apartment versus a typical, single-family home is the valuation. Most residential properties are going to be valued on comparable sales, which limits the possible returns earned from the residential flips. With a commercial property, such as apartments, the income generated by the property will determine the value. As a result, the possible returns from an apartment renovation may be quite large, based on how much you can raise from the property.

When it is time for you to value an apartment building, the value is typically set based on the current market cap rate and then divided by the revenue generated each year from the property. If you have an apartment that is earning $120,000 in income each year, and the current cap rate is approximately five percent, then the outcome is going to be $2.4 million dollars. While the nuances of this particular valuation process aren’t covered here, it gives you a general idea.

Before you take out any loan, it is important to know how you are going to pay it off. It’s also important that you can earn a profit by resulting in the property’s value to appreciate as fast as it can. When you are dealing with apartments, what is the fastest way for you to increase the value of your property? Raise the rent.

Raising rents that are exceptionally low is a great way to start and one of the most affordable and fastest ways for you to increase the value of your apartment, which is going to help you quickly repay the loan.

Millennials Are Moving to Phoenix – Here’s Why:

Phoenix, Arizona is certainly a city in the U.S. that can identify with the variance in how different age groups are experiencing the world. The city is no longer just a place for retirees and college kids. Millennials are discovering that the state’s remarkable capital city has much to offer and is full of exciting opportunities. And when you combine the city’s low cost of living with its unceasing beauty and pleasant temperatures, it should come as no surprise that millennials are relocating to Phoenix.

One area of particular interest that has gained national spotlight is Valley of the Sun, which is the Phoenix’s booming metropolitan region. The area has witnessed phenomenal growth, with much of the growth attributed to the arrival of so many millennials.

Among millennials, Phoenix is now considered to be one of the top spots to live. Let’s take a glimpse at why so many millennials are packing up and heading west and discovering what a remarkable booming city Phoenix really is.

Affordable Living

Cities that boast coastlines and huge millennial populations seem to gain the attention of the media. In reality, though, the majority of these cities are becoming extremely expensive for many millennials. Not only are millennials discovering they can pursue their dreams after college in Phoenix, but they can do so while still staying within their means.

Many millennials are hoping to find housing cost that is somewhat comparable to what they have adjusted to while attending college. When compared with other cities that offer comparable lifestyles, housing prices in Phoenix are considerably lower. Adding to this, when gas and food prices are compared to those living in coastal regions, prices are noticeably lower, making the prospect of owning a home more imaginable and the city even more appealing.

Economic Growth

The city’s rapid economic growth stems from its support of entrepreneurs along with its commitment to embrace change. This is demonstrated in the city’s tax policies, which have become essential to rewarding achievement and work ethic. The friendly city embraces its people and openly welcomes strangers to network and plant roots. Phoenix is considered to be a hotbed for economic development; the city continues to offer new activities and embraces social diversity, which is reflected in its majority foreign population.

The Great Outdoors

Phoenix and the surrounding areas offer an abundance of opportunities for millennials to experience the great outdoors. Its captivating landscape offers nature lovers a chance to participate in activities, such as exploring nature trails and mountain biking. There are lakes and rivers nearby as well, which is of particular interest to those who love swimming, skiing, or high-speed water sports. Affordable living and an ideal climate that supports both healthy living and socializing, Phoenix is a place where millennials can afford to enjoy life at its finest.

Millennials are finding both success and a satisfying lifestyle in Phoenix, Arizona. The city’s sense of community, low cost of living, and welcoming environment make it one of the top spots in the U.S. for millennials to relocate.

Making Rental Property Income in Arizona

Virtually everyone dreams of earning passive income. After all, what’s not to love? Being able to sleep in and know that money is consistently coming into your bank account is something that sounds like a complete dream come true – right?

However, making money with a rental income in Phoenix is much more difficult than it may seem and being someone’s landlord is a very time-consuming and laborious task. If you really want to make a living and make a true passive income using a rental property in the Phoenix area, then don’t stop reading.

Locating the Right Properties

Selecting the proper properties is something that can be extremely tricky. A great house is going to offer a superb neighborhood, great amenities close by for the tenants, a good location, easy upgrades, and a quality job market. Also, a great house will have superior curb appeal, as well as good street lights and well-maintained sidewalks. It’s possible to find a good location for a rental property by having an eye on the real estate market in the area and get to know the other rentals in the area and learn about current vacancies.

Good locations need to have plenty of amenities, such as gyms, coffee shops, restaurants and more. If you want to earn a good rental income in Phoenix, then it is a good idea to choose a home that has amazing features, or properties that can be upgraded with ease.

Upgrade Decisions

The rental income that you earn in Phoenix will vary quite a bit based on the features that are in place for your property’s tenants. If you have been able to find a property that can check all the boxes and that makes a great rental opportunity, then understanding which upgrades you need to do will help you earn the most cash.

Some areas where you should consider an upgrade to make the most rental income possible include:

  • The installation of a deck
  • New windows
  • Garage door replacement
  • Kitchen upgrades

There are also smaller updates that can be made such as updating the finishes, applying a brand-new coat of paint, and even installing a new countertop and rugs. Each of these fixes are going to help the entire property seem more modern and even more appealing to a more diverse group of potential tenants. Installing a new garage door is an extremely affordable upgrade. Be sure to keep this in mind when it comes to your rental property.

Budgeting for the Rental Income You Potentially Earn in Phoenix

Being able to budget for a rental property in the city of Phoenix is actually something that is pretty easy. You can even opt to keep track of the budget you have for repairs for the rental property on your phone. There are several budgeting apps available to help you with this.

If you want to make the most of your rental property then you need to know what you should charge your tenants, as well. You can utilize information provided by the real estate market, along with nearby rentals to figure out what you need to charge. By using properties that are comparable to yours you should be able to get a great price point.

In addition to all the factors found here, you also have to find the right tenants. This will ensure that rent is paid on time and that the property is taken care of so that you can continue earning a passive income on the property you own. This is crucial if you really want to earn as much as possible on the rental property that you have opted to purchase.

To learn more about making a passive income with rental property in Arizona, contact Barrett Financial Group today at 480-999-6183. Our expert team will answer all your questions and make your dreams come true with a hard money loan in Arizona to secure the perfect rental property.

How To Get Into Arizona House Flipping

House flipping can be a very lucrative and rewarding business if you have the know-how and are willing to put in time and effort. This corner of the market has exploded over the past decade (largely thanks to reality TV shows on house flipping), as more and more people have gotten into buying older homes for cheap with the intention of renovating and selling them for profit. Arizona in particular is a great place to get into house flipping, as the real estate market in general is strong but still has plenty of older, decrepit properties being listed for cheap.

The good news is that just about anyone can flip a house, even if they don’t have prior experience. All it takes is dedication, a little creativity and of course, some investment up front. In fact, many people who start with just one house end up doing it again and again because their experience was so rewarding (financially and, very often, personally). We’re here to help you with the financial investment that flipping houses often requires, but in the meantime here are some tips you can use to get into flipping houses and turn your venture into a success.

Keep Doors Open

There are a lot of ways to find great opportunities right here in Arizona for house-flip projects. If you want to explore a lot of low-price options in a short period of time, it is a good idea to enlist the help of a realtor. Otherwise, you can find a great deal on your own if you’re willing to put in the legwork. Using websites like Zillow is one way to find cheap listings in the area of your choice, and it is also possible to get one through a foreclosure auction. If you do find a house online, just be wary of sending money online or being asked for a check without seeing the property in person and without a realtor involved. Always do your research, which of course brings us to the next tip…

Do Your Research

Whatever you do, don’t jump to buy the first cheap house for sale without knowing exactly what you’re getting into. After all, some people make the mistake of buying a cheap house, investing a lot in renovations, then pricing it way too high for the neighborhood it’s in. Likewise, some people don’t go as far as they should with the renovations, and the house still ends up looking a bit run-down in comparison to its neighbors. No matter how the house turns out, it just won’t sell (or at least not for as much as you want it to) if it no longer fits in with the surrounding area.

Don’t Neglect the Exterior

All of your hard work on the inside of the house won’t matter much if you can’t even get prospective buyers in the door! After all, many people tend to drive by houses for sale before they decide to take a tour up close, and there’s no easier way to turn someone off from this idea than to have an unappealing curbside view. The outside of the house should therefore be inviting, and any lawn should be well-kept. If there are any trees or hedges, they should be trimmed and far from unruly. This of course includes cleaning up and properly disposing of any remaining construction / renovation tools.

Another great way of making sure the outside complements all the great features the inside has to offer is to add pops of color. All too often forgotten, for example, is the mailbox (if applicable). Installing a cute, unique mailbox is always a great idea, but at the very least you should give it a fresh coat of paint. Other ways of adding touches of inviting color include a brightly colored door (as long as it does not clash with the rest of the exterior colors) and / or window shutters.

Don’t Over-Do It

When you’re looking to flip a house, you should first look at what the property does currently have to offer. After all, why spend a lot of time and money on large-scale renovations when you don’t actually need to? Sometimes a house just needs to be updated rather than fully renovated, saving you a lot of unnecessary time and money in the process.

Slow and Steady Wins the Race

It’s healthy to set timelines and goals for yourself, but it’s never good to rush things. Be realistic with the amount of time you’re going to need to flip the home. It’s important to not rush through the project, as then you risk having to list the house for far lower than you planned. Take the time to actually execute the renovation properly and ensure that the value of the property increases as it should.

Don’t Be Afraid to Ask For Help

We all need a little help sometimes. If the house needs some extensive renovations that require more than a coat of paint or other basic modifications, it’s a good idea to consider going with a professional contractor or at least enlisting the help of someone with more experience. When it comes to actually putting the house up for sale, you may also want to sell through a realtor or consider hiring a professional stager to ensure the house is in show-ready condition. Arizona has a booming real estate market, and so the good news is that you can hire the professional help you need without spending a fortune.

And of course, if you need any assistance on the financial front, Barrett Financial Group is here for you. Please feel free to reach out to us to learn more about how we can help you achieve your house flipping dreams.

 

How Arizona Fix and Flip Loans Work

Popular shows like Flip or Flop and Fixer Upper are viewed by millions of people each day. After just a few episodes, it is evident that in the pursuit to make a profit, “flippers” do not always know what is lurking behind the walls and in the crawl spaces of the properties they buy. In order to mitigate these types of risks, it is best to devise a business plan. This plan should always ensure that enough money is being borrowed to cover the costs of any necessary renovations.

In order to invest in a fix and flip that is worth your time and money, you must first determine if it can be bought below market value. To increase the value of the property, you would then perform a rehab that consists of making improvements and repairs. Once the updates and repairs have been made, the goal would be to sell the property at a profit.

With the market full of great opportunities for fix and flip projects in Arizona, many investors look to an Arizona FIX AND FLIP LOAN. The loan does not follow customary financing and the funds received are secured by the value of the property. The loan is financed using the foreclosure of the property as collateral.

A fix and flip starts with finding the property you want to invest in. From there, you start devising a plan on how you will finance the purchase and rehab costs. This will include financing for the purchase price of the property, the holding cost, the cost needed to rehab the property, and any closing cost. Due to not meeting FHA guidelines, Fix and Flip loans do not qualify for traditional financing, and rarely do banks take part in such loans.

Unfortunately, with the level of risk involved and the speedy turn around time, you should expect to pay higher interest rates on Fix and Flip loans.

Numerous options are available to acquire an Arizona FIX AND FLIP loan, but most property investors know that the easiest and most straightforward route is to find a hard money lender. Arizona hard money lenders are individuals or private investors that know your success means translates into their success as well. With lower qualifications and a quick approval and funding process, many people have found success through a hard money lender.

The good thing about an Arizona fix and flip investment is that you don’t have to have an excellent credit score or even a down payment. With a good business plan, a carefully-planned strategy, determination, and good work ethics, you can take advantage of the great fix and flip market in Arizona. Contact Barrett Financial Group now to learn more about Fix and Flip hard loans.

Top 5 Factors Driving the Real Estate Investment Market in Arizona

Arizona is , without a doubt, is one of the biggest and most popular states in the country. The capital city, Phoenix, presents a number of appealing factors which help to make it one of the great cities to live and invest in. In fact, it offers something for everyone. The state of Arizona has modern recreational entertainment, dining and shopping facilities, great weather and interesting cultural attractions.

In recent years, the real estate market in Arizona has continued to grow and thrive. In addition to other pull factors, this area of the US offers buyers a wide array of properties to choose from, including patio homes, condominiums, twin homes, townhomes and family residences. Here, learn more about the top five factors that are helping to drive the Arizona real estate market forward.

1. Economic Growth

The economy in the state has kept gaining momentum in the past few years, which has had a direct impact on the real estate market as a whole. There has been quite a bit of growth in the existing industries, along with more startup businesses moving into the area. A number of new companies have also opened new branches, offices or even transferred their headquarters to the state, due to the friendly business environment.

The result has been an increase in job opportunities, improved standards of living, higher income and falling levels of unemployment. For example, Phoenix has several employment opportunities available in the healthcare, finance and retail sectors. This growing economic growth in the state has helped attract more people to move to the area, resulting in an increase in the demand for residential and commercial properties. Experts have estimated that Arizona is going to have sustained economic growth throughout 2018.

2. Changing Demographics

In the previous years, the population in Arizona has grown and changed significantly. Other demographics in the state have also changed, including migration patterns, economic status, age and education level. The increase in the population in the state has helped to stimulate the demand for more housing units. A large number of people have employment, which means they are able to buy or lease properties. Age has also helped to diversify the real estate market as millennials, baby boomers and Generation X will keep the industry healthy.

This growth in population has helped to increase the demand for other services and goods, too. As a result, there’s a greater need for all types of properties, including office spaces, restaurants, hospitals and apartments. With a growing number of people, investors are finding this a promising area to inject more money into the real estate market.

3. Appealing Interest Rates

The interest rates on property loans play a huge role in the overall real estate market. This is because most people prefer to have a mortgage payment plan. A low interest rate means a lower mortgage payment and a higher demand for real estate in the area.

The mortgage interest rates in Arizona are low, which makes it appealing for people to buy, rather than rent. Also, buyers can expect to see under four percent interest on various fixed loans. Hard money lenders have also helped to boost the Phoenix real estate market. These private lenders have made it simple to get fast hard money loans.

4. Competitive Pricing and Affordability

While Arizona is listed as being one of the top five metro regions in the U.S., the property prices are still affordable. In fact, the average cost of a home in Phoenix is around $255,000. As a result, many people find it more affordable to live in this state. In addition to the property prices, Arizona cost of living is lower compared to other larger states. This means that you will spend less on education, transportation, healthcare, gas, and food. The friendly living environment has helped to boost the real estate industry in this area.

5. Lifestyle

There are varying climates in the state of Arizona that range from warmer weather in Tucson and Phoenix to cooler temperatures in Flagstaff and Prescott. As a result, it’s a suitable location for many lifestyles. The region is home to some of the very best golf courses, local events and hiking trails in the United States. While the social amenities are amazing, the state of Arizona is also much safer than other parts of the country.

When it comes to where you want to live, work and play, there’s no question that Arizona should be on your list. In addition to having a booming economy, you can easily invest in real estate here. This state has grown in recent years, and if the experts say buy, then you should listen. If you want to take advantage of the amazing opportunities in Arizona and become a real estate investor, now is the time to make a move.

Why Commercial Loans in Arizona Can Grow Your Business

If you’re the owner of a business, chances are that you already know that growth can be difficult. After all, it’s challenging enough to start a business in Arizona much less expand it. But the good news is that you can give yourself and your business a much needed boost by getting a commercial loan. If you’re hesitant, you’re not alone. However, it is important to consider the following when deciding whether or not a commercial loan in Arizona is for you.

A Commercial Loan Is a Long-Term Solution

Whereas other types of loans are meant to be repaid quickly, commercial loans in Arizona are meant for those who have long-term, multi-stage plans for their business. Many different kinds of long-term payment plans are therefore available, allowing you to move more steadily and carefully along with your plans. This in turn allows for better results.

A Small Loan Now Can Lead to Big Time Results

Commercial loans are intended for those who have a solid business plan and are looking to see considerable growth over a period of time. And because the overhead costs of securing the loan are relatively cheap, many business owners in Arizona who use a commercial loan to invest in their business end up seeing a lot more growth than first anticipated.

Large Amounts Can Be Loaned Out at a Time

There is no “standard” amount when in comes to commercial loans, and while many people choose to start off modestly, many others are able to foresee that they’re going to need a lot more help. Need a lot of money upfront to achieve your business dreams? Hey, the truth is that most business owners do. And with a commercial loan, you can get the money you need right from the start or work out a system where you’ll have access to it over time. Because these commercial loans are meant specifically for business ventures and, again, long-term plans, you are much more likely to be approved for a large sum of money than with other types of loans.

Commercial Loans Are Lower Risk 

Overall, commercial loans in Arizona are considerably lower risk than many other types of loans often sought out by business owners or general entrepreneurs. This is largely due to the fact that many types of commercial lenders do not require any collateral upfront, though it also helps that these loans have flexible repayment plans and generally high approval rates.

Never Lose Ownership of Your Business 

Going along with the above, lot of other types of lenders require collateral like the property deed or even ownership of the business for the duration of the loan period. It’s important to realize here that even though the lender may not be acting on their ownership, they can take it over in the end should even a small error occur on your part.

Considering the Bottom Line

It’s true that not all businesses need a commercial loan to get ahead, but they are often few and far between. If anything, those that do take advantage of commercial loans in Arizona are making an important and well calculated investment in their business and their future.

3 Things to Look for in Private Money Lenders

If you have made the decision to get in the investment property game, that’s a great move. Regardless of if you are planning to flip a few single-family homes or become a landlord by investing in a multi-family property, the first step is to determine how you will finance your project. After all, if you don’t have a clear idea of where your funding is coming from, you aren’t going to be prepared to make any offers on the property to begin with.

What you need to understand is that making real estate investments usually follows a different path that buying a primary home. Most investors use private money lenders. That’s because this allows them more flexibility and they will have the chance to build a business relationship that only becomes more beneficial for both people involved over time.

The challenge is finding the right lender. If you want your deals to move quickly and easily, then you need to do your research to find the right lender.

Three things you need to look for in a quality private money lender can be found here.

1. Responsiveness 

One of the biggest benefits offered by working with private money lenders over a traditional finance company or bank is that deals are usually closed much more quickly. In fact, it can be done in just days, instead of weeks or longer. This is why the lender you choose needs to be responsive. If you have found the ideal property, you don’t want to put it in jeopardy by working with lenders that take much to long to respond.

2. Transparency 

During any transaction, you want to make sure you know what’s happening each step of the way. Reputable lenders are going to ensure you remain informed, and they will also adhere to the guidelines and the regulations that have been set by the local or state government regarding the loan origination process.

3. Competitive Points and Rates 

When you are shopping for a lender, regardless of if it is for more traditional lending or from a private lender, one of the most crucial things that you need to consider is the points and interest rates associated with the loan terms. With that in mind, you also need to know what you are looking at. The points and interest rates for any type of single-family home mortgage from a typical lender are usually going to be significantly lower than the rates provided by private mortgage lenders.

This is because a traditional mortgage is given with the thought that it is a long-term investment. Lenders know they are dealing with fix-and-flip properties and investments. You can’t try to compare the rates of a private money lender to what a large bank offers. That’s like trying to compare oranges and apples.

You also need to think about the type of funding you are going to have to have. Certain fees and down payments are considered standard in the industry, but you should not be “fooled” by a company that wants you to put down a huge “engagement fee” as well as the typical fees.