Posts

Top 10 Tips to Selling Faster in Phoenix

It’s only natural to want to sell a property as quickly as possible. Whether you’re flipping a house or are selling the place you’ve lived in for years, finding and securing a buyer quickly allows you to move on faster and not have to wait for a big payoff.

Visit any bookstore or do a quick Google search, and there’s tons of literature on the art of selling property. However, a lot of it is full of vague information and tedious steps that don’t help you sell quickly. While you don’t want to cut out necessary steps, there are measures you can take to sell quickly and smoothly.

Follow these top 10 tips to selling faster in Phoenix, and you’ll be signing over your property in no time!

1. Make Sure All Maintenance & Improvements Are Complete

A lot of people make the grave mistake of listing the property prior to all renovations, maintenance projects and landscaping being completed. While it can seem like a time saver to list the property when it’s almost completed, doing so often boils down to some wishful thinking and a misunderstanding of how long these projects can actually take. Showing the property before it’s finished (and this also means being thoroughly cleaned inside and out) can also lead to lower bids being offered.

2. Take Quality Photos

Having great photos of your property is among one of the most important things when it comes to selling, because these are what actually draw potential buyers to the property. While you don’t necessarily need to hire a professional for this, all of the photos should be high resolution and well lit. Make sure there are no mop buckets or cleaning products left around, and if there is furniture, it should be clean and well staged.

3. Make Sure the Price is Right

It’s a good idea to discuss what the price should be with an experienced real estate agent, or if you’re selling on your own (not necessarily the fastest way to sell, but still doable), do your research on what similar properties in the area have sold for. You don’t want to be overpriced, but you don’t want to undersell either. Buyers will be quickly attracted to a property that is reasonably priced and fits what they expect to pay in the area.

4. List on MLS

Your local Multiple Listing Service or MLS is your best bet to sell the property quickly. This will give the property more exposure, and it can easily be done through a broker or real estate agent who works in the area.

5. Read the Market

Once your property listing is up and running, it is important to pay attention to how it performs early on. If you’re not getting as much interest as you’d like, it could be because of something you can easily fix (like getting better photos or supplying more information). Talk to your agent about how things are going on the buying side of things, and see if there are any comments coming through that you can use to your advantage.

6. Be Smart About Lowering the Price

Going along with the above, sometimes one of the adjustments you’ll have to make is lowering the price. However, a dramatic drop in price can look bad, and too many price reductions can also turn buyers away. If you’re going to lower the price, it should only be done to meet market standards and should be done as sparingly as possible. You can discuss what the best strategy is here with your real estate agent.

7. Only Accept Offers with Lender Approval

When you do start getting offers, you should only look at ones that come with an approval letter from the buyer’s lender. The last thing you want to do is accept a bid quickly only to find that the buyer doesn’t actually have the funds to back it up, as this can end up costing you time and money.

8. Go with the Best Offer

Contrary to popular belief, the best offer is not necessarily the one that offers the most money. Instead, it is the one with a responsible buyer who will close on time and is financially qualified. They already have lender approval, and they are prepared with all the documentation they need. Oftentimes, the first offer you receive is the best one, but it is still important to review these qualities in each offer you are considering.

9. Be Prepared for the Inspection

Most buyers won’t close without an inspection being completed, and in many cases they will have specific details they want looked at (like the foundation, water heater, electric outlets, etc.) to make sure the property is up to code and safe as well as valuable. Be prepared for this ahead of time so you aren’t caught off guard.

10. Complete the Appraisal

The final step is letting your property be appraised. This process can go faster if you have gotten a previous appraisal report that you can provide a copy of, as it will help the current appraiser do their job more efficiently (and better understand your pricing).

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.

Why Non-Judicial Mortgage States, like Arizona, are More Inviting to Investors

When individuals purchase a home, the paperwork they signs as part fo the loan process include a provision that allows the lender to sell the home should the borrower fail to make the agreed upon payments. This is more commonly known as a foreclosure. While this process can take a significant amount of time, depending on a vast array of factors, these homes can be a great option for those who are interested in investing in real estate for a lower cost. However, there are different types of foreclosure to keep in mind. There’s good reason real estate investors prefer to work with foreclosures in states like Arizona that use the nonjudicial process.

How Does the Foreclosure Process Work?

A foreclosure doesn’t automatically trigger simply because the homeowner misses a single payment. In fact, according to Arizona foreclosure laws, this process doesn’t begin until the homeowner is at least 120 days late on their payments. This is a federally mandated minimum. Once the process begins, there is a certain series of events that will take place, each of which leads up to the sale of the home. Foreclosure sales are often significantly cheaper than buying a home on the market because they are geared toward recovering the remaining balance on the loan, rather than making a profit. This means those who are interested in getting involved in real estate investing can often find great deals that provide the greatest chance of a faster return on investment for the property purchased.

The first step in the foreclosure process is to serve the homeowner with a preforeclosure letter that indicates their loan is in default and the foreclosure process is set to begin. Per federal law, this notice must include a letter that states a number of options the homeowner can choose to pursue in order to prevent the foreclosure. This should include the steps needed to reinstate the loan, which usually involves catching the payments up and can be completed up until the day before the foreclosure begins. Another common option offered is the right to redeem the home, which typically requires a full payment of the mortgage loan or reimbursing the individual who ultimately buys the home on the foreclosure sale the full amount they paid. Unfortunately, Arizona state law doesn’t allow for a home to be redeemed after a nonjudicial foreclosure is complete.

While a foreclosure is meant to pay the bank the remainder of the loan so they can recover any potential losses due to nonpayment, the selling price in a foreclosure is often less than what the original borrower still owed. In these situations, the bank does have the option to file for a deficiency judgment against the homeowner for the difference between the two amounts. The good news is paying a lower amount doesn’t affect the buyer of the property at all so real estate investors can often get a good deal on the property to either resell later or rent out.

Why Are Nonjudicial Foreclosures Better for Investors?

Although the foreclosure process can take a considerable amount of time from the first missed payment to the sale of the property, a nonjudicial process is typically a better option for real estate investors because the process takes less time. A nonjudicial foreclosure doesn’t involve the court system, which means there’s less time spent waiting for a hearing that will dictate how the foreclosure proceeds. In most cases, the home will be on the auction block within 180 days of filing for the foreclosure. Because the home is sold on an auction block, it’s possible to get a great deal on a home that can quickly be turned around for a profit, making it a great option for those interested in real estate investing.

Before getting involved in any type of real estate investment, especially if you’re interested in purchasing foreclosed properties, it’s important to be familiar with the laws so you understand how it works and when it’s the best time to look for properties. Arizona offers the nonjudicial process so lenders can recover their money more quickly and turn the properties around without suffering from major financial loss. This provides the perfect opportunity for those who want to purchase real estate to either sell it for a profit at a future date, potentially after making renovations, or to rent to tenants to create a steady stream of income. You can purchase these properties for a lower price than they would originally sell for and then turn around to sell them for a much higher price.

Foreclosure can be a devastating event for those who find themselves in this situation, but it can create an excellent opportunity for individuals who are interested in getting started in the real estate investment world.

Arizona Business Loan Options

When exploring business loan options in Arizona, company owners are often surprised by the various types of financing they have access to. And for many company owners, it is especially surprising the benefits to be gained when going to an alternative lender. 

Securing funding is the first step that must be taken when starting a business. And while many business owners will visit a local bank in hopes of getting a business loan, this type of lending comes with certain hurdles to overcome, especially when compared to going to an alternative lender.

Understanding the Benefits of Alternative Lending

There are many benefits to alternative lending. One of the primary benefits is that these types of lenders have a higher and faster approval rate, and secondly, they allow you to obtain funding in a shorter amount of time because they are an independent entity, resulting in a higher success rate.

When choosing to go with an alternative lender, borrowers will find that the lenders are more flexible in regards to qualifications that must be met. More so, when in need of financing for inventory purposes, alternative loans tend to be far more successful. In fact, most banks will not provide any type of financing for inventory. In addition, most alternative loans will not require the business owner to use his or her personal assets as a form of collateral for the financing; this not only increases a borrower’s confidence in being able to get approved, but it also adds to the personal security that the borrower is able to sustain in knowing they don’t have to put their personal assets on the line in order to secure a loan.

Credit Is Not an Issue

Another benefit of alternative financing is that when trying to obtain a business loan, your personal credit is not a factor. Unlike most banks, alternative lenders won’t dive deep into the borrower’s personal finances. Instead, they look at the merits of the company, not the borrower.

Save Time

Lastly, if you have ever applied for a loan at a bank before, then you know that the process can be arduous and lengthy, many times taking weeks to process. In fact, the actual loan application process can take upward of three months. By the time the bank is ready to fund your business loan, you may not need the money anymore. Or even worse, your business could be collapsing by the time the funding comes through.

The Takeaway

To maximize your business opportunities, especially in relation to time-sensitive matters like landing a new client, you should carefully consider the benefits to be gained by working with an alternative lender.

Hard Money Lending for Your Construction Project

When most people think of hard money lending situations, they think of borrowing the money to purchase a home you intend to use as an investment. However, this isn’t the only use for this type of loan. In fact, you can also use them for certain construction projects. The benefit of choosing these types of loans over traditional loans is you can borrow an amount based on the potential value of the completed project rather than the current value of the home.

Why Hard Money Lending Is Better

If you seek a traditional loan for your construction project, you will be severely limited based on the current value of your property and how much equity you have. Hard money lenders often operate differently. These individuals are more interested in the investment potential of a property and are thus more likely to lend you a larger amount based on how much the construction project is projected to increase the value of the property. They also don’t place importance on your current credit score or many of the other factors traditional lenders take into account to determine whether you qualify for a loan and for how much. These loans can be used to start a new project or complete an unfinished project you ran out of money to pay for.

How to Locate the Right Hard Money Lender

Not all hard money lenders are interested in borrowing to individuals who need the money for a construction project. This can make it a little more difficult to find the right one. First, it’s important to inquire whether they have experience in construction lending. Once you find several that offer lending for construction projects, look up reviews on third-party sites to ensure you work with an individual who has a solid reputation in the field. Once you choose a hard money lender, you will need to provide the precise details of your construction project. This can help them decide whether they are willing to take the risk of lending the money for this type of project. Once they evaluate the property, the scope of the project and the prospective increased value the project will bring, they will be able to offer the money you need to get the construction project done.

Choosing a hard money lender for your construction project is one of the fastest, easiest ways to fund this type of project. These types of loans are often easier to acquire than obtaining money from traditional lending institutions, such as banks, because they don’t look at the current value or even your credit history. They are more interested in the potential for the increase value of the property as an investment opportunity.

Tips to Avoid Paying Too Much for an Investment Property

There is no question that purchasing investment property is becoming something that is growing in popularity. After all, land and property is the one thing that there will never be more of. However, for those who are new to purchasing investment property, there are several things that must be known. Some tips to ensure you don’t overpay for this investment can be found here.

Determine the Median Price in the Selected Suburb

If you have plans to invest in property, you should first find out what the median price for the suburb was and which prices fell or rose in the previous year. Also look into the prices for the past five and 10 years. In most cases, this information can be gathered with an online search.

Utilize the Services of a Buyer’s Agent

It may be smart to engage the services of a buyer’s agent who is an expert in the area and able to provide reasonable guesses regarding the value. The buyer’s agent will also be beneficial if the market is going to auction and make bid’s calmly without any emotion. These services are invaluable when attempting to purchase investment property.

Track the Property Sales

It is a good idea to track the property sales in your selected suburb and learn what properties will go to auction on a weekend. Pay attention to similar properties that are sold, as well. This will ensure you get a great deal on the investment property you are considering.

Be Ready to Take Action

Be sure that you know what you can spend before looking into any investment properties. There is no reason to negotiate a great price and not be able to go through with the deal. It may be wise to seek a loan for the investment property prior to searching. This will let you know for sure what type of investment you can afford to make.

Time is of the Essence

If you are planning to make an investment in property, you have to remember that time is of the essence. After all, if you wait, then it may result in someone else looking to make an investment in a low-priced property coming in and purchasing the property instead.

If you are new to purchasing investment property, you have to take the time to know what to do and how to handle the process. If you aren’t careful, you may wind up spending too much for the property that you are interested in. Being informed and even seeking the help of someone who has invested in property before may be beneficial and help you along the way.

How Long Does it Take to Close a Hard Money Loan in Arizona?

If you’ve ever closed a traditional loan, you know how long it can take. However, expect a hard money loan to take even longer and to have a lot more involved in the closing process.  You can expect your hard money lender to help you through this process and give you a checklist of required documents and items required to close the hard money loan.

Hard money loans have a lot of people involved in closing a hard money loan and we will take a closer look at each one and the job they need to do. Read more