To get the most out of your private money loan you’ll want to avoid these 3 things in order to bring yourself the most success with your investment.
Arizona fix and flips need to be carefully planned and executed in order to bring the highest return on investment possible. There are a lot of moving pieces and each needs to be managed so time schedules and budgets don’t get away from you. There are a few problems that investors run into that can kill the proceeds on a Arizona fix and flip.
To make sure you can pay off your private money loan and then some, stay away from these 4 pitfalls of Arizona fix and flip investments.
Pitfall 1: Not Having Support
If you aren’t going into a Arizona fix and flip with a great team behind you, you’re going to run into issues. You want to have a stack of trusted vendors at the ready so you can address things when they happen. Most Arizona fix and flip teams will consist of a contractor, lawyer, realtor, and lender to fund the private money loan. Having backups will also be helpful in case your go-to person isn’t available when you need them.
Pitfall 2: Not Scrutinizing Your Contractor
The general contractor you work with for your Arizona fix and flip is arguably the most important person on your team. The contractor can make or break your Arizona fix and flip by either keeping you on schedule or getting behind, sticking to your budget or overspending. You should be vetting your contractor by interviewing past clients and, if possible, visiting past work sites to see their work.
Pitfall 2: Holding the Property
We know that once you’ve completed your flip, you want to get top dollar on the sale. You may even have some emotional attachment to the property that you have spent weeks or months renovating. That being said, you want to get an acceptable offer and move forward quickly. If you hold out for an extended period of time just trying to get a few more thousand dollars out of a buyer, you can end up losing money on monthly expenses like HOA and utilities.
We love to work with investors who have plans for a successful flip and would love to hear yours. Call Level 4 Funding today!
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
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.
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