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Defining A Hard Money Loan

By on August 15, 2023   /   hard money loans, Investment Property Loans  

Refinancing With Hard Money Lenders

A hard money loan is a type of short-term, secured loan that is used to finance real estate investments. Hard money loans are typically offered by private lenders or investment groups, rather than banks. They are often used by real estate investors who need cash quickly to purchase or renovate properties.

Hard money loans are characterized by their high interest rates and short repayment terms. Interest rates on hard money loans can be as high as 15% or more, and repayment terms are typically 12 months or less. These loans are also typically secured by the property being purchased or renovated.

There are several reasons why someone might choose to get a hard money loan. One reason is that hard money loans can be approved quickly. The approval process for a hard money loan is typically much shorter than the approval process for a traditional mortgage. This can be helpful for investors who need cash quickly to close a real estate deal.

Another reason why someone might choose to get a hard money loan is that they may not qualify for a traditional mortgage. Hard money lenders are often more lenient than traditional lenders when it comes to credit scores and debt-to-income ratios. This can make hard money loans a viable option for investors who have less-than-perfect credit.

However, there are also some drawbacks to hard money loans. The high interest rates and short repayment terms can make these loans very expensive. Additionally, if the borrower defaults on a hard money loan, the lender may be able to take possession of the property.

Overall, hard money loans can be a good option for investors who need cash quickly and who may not qualify for a traditional mortgage. However, it is important to be aware of the high interest rates and short repayment terms associated with these loans before taking one out.

Here are some of the pros and cons of hard money loans:

Pros:

  • Quick approval process
  • More lenient lending standards
  • Can be used to purchase or renovate properties

Cons:

  • High interest rates
  • Short repayment terms
  • Risk of foreclosure if the borrower defaults

If you are considering a hard money loan, it is important to weigh the pros and cons carefully before making a decision. You should also make sure that you understand the terms of the loan and the risks involved.

Phoenix Hard Money Real Estate Loans

If you’re interested in getting involved with real estate investing and need the capital to purchase properties hard money is a great way to get started.  Brad Loans has extensive experience in both real estate investing and hard money lending and is proud to offer Phoenix Valley real estate investors the financing they need.  It is easy to get started applying for hard money loan and Brad Loans is able to work with clients with bad credit and no credit. We are your source for hard money when traditional banks say no.  Read more about Brad Loan’s hard money loan programs or get started fill out our hard money loan application or give us a call to ask questions at 602-999-9499.

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House Flipping Ideas

By on July 23, 2023   /   Investment Property Loans  
Using Hard Money Loans in Real Estate Investment in Phoenix, AZ

House Flipping Tips

When flipping a house you need everything to go as smoothly as possible. Here are some top tips to help you through the flipping process.

  • You need a good exit strategy and work out what you are going to pay for it and what you are going to do with the house once you have renovated it. A good plan is to purchase the house, have a contractor fix what needs repairing or renovating and then sell it.
  • You have to source the money for the property purchase. www.bradloans.com can help!
  • Work out the cost of your investment and for how long you will have to borrow money. If a house in your area on average takes 6 months to sell, go for 9 months.
  • It is best to find a house in an area where the property is selling rapidly. A good rule of thumb is to go for a house slightly below the current median home price. Remember, people are not always willing to buy in areas where there are a lot of renters.
  • Discover as early as you can how much repairing and updating the house will cost. A contractor can help here. Take notes on everything they say regarding costs.
  • Get ready to start as soon as the house has closed so time is not wasted
  • Develop a good relationship and contract with your contractor! Put everything in writing and be very detail oriented so everyone has the same expectations, milestones, and targets. Oh, and do not forget the penalty for not finishing on time!
  • Do not go over the top of making improvements to the house. It is an investment and you are not going to be residing there.
  • It is very important to finish the house on time and under your designated budget. Part of that is keeping people on their toes and making sure they are aware of the consequences (penalties) of not doing so.
  • Make sure the house is well staged and clean before display.
  • If the house is not selling at the price you want, most likely it is priced too high. People lose money all the time because they are not willing to lower their price.
  • Be open to negotiation. Sometimes it is best to barter on something relatively insignificant to secure the deal giving the buyer the feeling they got a deal.
  • Understand your holding costs. Every day the house does not sell is another day eating away at your profit.
  • Be prepared to make concessions to close the deal, especially if it is costing you money or being dragged out.
  • Follow up the title company to make sure everything is progressing in a timely manner.
  • Remember to cancel the utilities!
  • Once the process is over sit down and work out what went well and what needs improvement next time you flip a house.

 

 

Phoenix Hard Money Real Estate Loans

If you’re interested in getting involved with real estate investing and need the capital to purchase properties hard money is a great way to get started.  Brad Loans has extensive experience in both real estate investing and hard money lending and is proud to offer Phoenix Valley real estate investors the financing they need.  It is easy to get started applying for hard money loan and Brad Loans is able to work with clients with bad credit and no credit. We are your source for hard money when traditional banks say no.  Read more about Brad Loan’s hard money loan programs or get started fill out our hard money loan application or give us a call to ask questions at 602-999-9499.

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Common Problems With Flipping Houses

By on July 15, 2023   /   House Flipping  

Bridge or Fix and Flip Loans

Flipping houses can be a profitable venture, but it’s important to be aware of the common problems that can arise. Here are some of the most common problems with flipping houses:

  • Underestimating the costs. It’s easy to get carried away with the excitement of flipping a house and underestimate the costs involved. This can lead to financial problems if you’re not careful.
  • Running into unexpected problems. Even if you do your due diligence, there’s always the chance that you’ll run into unexpected problems during the flipping process. These problems can add to your costs and delay the sale of the property.
  • Not selling the house for enough money. If you don’t price the house right, you could end up selling it for less than you invested. This can wipe out your profits and even put you in the red.
  • Not having enough time. Flipping houses can be a time-consuming process. If you don’t have enough time to do the work, you could end up making mistakes or running into delays.
  • Not having the right skills. Flipping houses requires a variety of skills, including real estate, contracting, and marketing. If you don’t have these skills, you could end up making costly mistakes.

Here are some tips to help you avoid these problems:

  • Do your research. Before you buy a house to flip, do your research and make sure that the property is in good condition and that the market is right for flipping.
  • Get professional help. If you’re not experienced in flipping houses, get professional help from a real estate agent, contractor, or financial advisor.
  • Set a realistic budget. Be realistic about the costs involved in flipping a house and set a budget that you can afford.
  • Be patient. Flipping houses can take time, so be patient and don’t expect to make a quick profit.

By following these tips, you can help reduce the risk of problems when flipping houses.

Financing For Fix and Flips

Brad Loans provides competitive financing alternatives for real estate investors interested in fix and flip projects. Get no interest on unused renovation funds, 100% financing on rehabilitation costs, and closings in in around 10 business days when applying for a Brand Loans Fix and Flip Loan.

Hard Money Lenders in Phoenix, AZ

When you are searching for hard money loans near me in Phoenix, Scottsdale, Glendale, Tempe, Mesa, Chandler, or Gilbert, Arizona; Brad Loans is Arizona’s most trusted direct hard money lender!  We specialize in hard money loans for Fix and Flip, refinancing mortgages with bad credit, business loans secured by real estate, real estate purchases, short sales, and other endeavors with quick turnaround in the Phoenix Valley.

BradLoans.com is the most trusted direct hard money lender and private money lender in Arizona! We are the best hard money lender in Arizona with the ability to fund commercial & residential hard money loans many times within a couple of days or less. Our lending rates and fees are reasonable compared to other Arizona hard money brokers or mortgage brokers in Arizona.

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