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How Long Does It Take To Flip A House?

How Long Does It Take To Flip A House

The first question for any house flipper is usually, “how long will it take to flip this house”? The answer to that question will depend on several variables. As a very broad rule of thumb you can estimate that it will take a highly-experienced house flipper 3-6 months to complete this process. Inexperienced house flippers typically take 12-18 months to flip a home.

Let’s take a look at each stage of the flip to estimate a proper timeline below!

Stage 1. Buying The Property

This should be the quickest part of your flip. Of course, 5-10 days is a very optimistic timeline and this estimate could vary if you acquire the home through a traditional route. Purchasing through a realtor or auction can greatly extend your timeframe. Through traditional sales, it can sometimes take a few months to purchase a home.

The most time-efficient way to finish stage one of the flip is to buy from a wholesaler. Purchasing through a wholesaler will save buyers the time and hassle of bidding wars or racing against other potential investors. It is definitely possible to buy a property within ten days through a wholesaler. Utilizing hard money loans, much like using cash, is the best option to save time on this investment.

Estimated Length Of Time: 5-10 days.

Stage 2. Renovation

The key to getting renovation needs done quickly is having an organized crew ready from the start. Successful renovation planning can give you control over the flipping turnaround and eventual profits. The renovation process can take up the overwhelming majority of your time and budget. In most cases, the actions you take to save time will also help you conserve money. Planning this process ahead of time gives you full control over your schedule and finances.

To predict how long your renovations might take, you need to figure out which kinds of work you will perform. For instance, you need to know the difference between the purchase and potential selling price. Prepare yourself by comparing selling and listing prices of nearby homes ahead of time.

By getting a home inspection done before buying, you can be saved from any unpleasant surprises. These inspections usually cost a few hundred dollars, but they can potentially save you tens of thousands. Once you set a budget, You can figure out which discretionary improvements to make. The recommendation here is to focus on the kinds of improvements that yield the highest returns.

Estimated Length Of Time: 45-90 days.

Stage 3. Selling The Property

If you choose to list your property on MLS, you can pay for different lengths of the listing, ranging anywhere from 6-12 months long. The biggest factors in determining how long the sale may take are the home and market conditions. It’s very possible that you wait more than a year before selling the home.

Estimated Length Of Time: 45 days-6 months.

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.

ARV: What You Need to Know About It and How It’s Calculated

ARV: What You Need to Know About It and How It’s Calculated

ARV means After Repair Value when it comes to property evaluation. This calculation is crucial for investors looking for real estate to purchase. This helps them determine the price as the home currently sits, and what it would be after the home has gone through repairs and renovations. With this calculation in mind, it helps you understand whether or not there would be enough property value for profitability.

Understanding After Repair Value

The initial step in figuring out the property ARV would be to look at similar properties in design and value. Checking recent sales in your neighborhood or area is always a good reference when estimating ARV. There are countless ways investors perform research on the property, such as:

  • Cross referencing MLS’s to review pricing for properties in the area.
  • Partnering with brokers or agents that have access to an MLS.
  • Leverage online resources such as realtor.com, or LoopNet and many others.

When reviewing similar properties be on the lookout for the following:

  • Properties that have been sold in the last 2 to 4-month window.
  • Homes of similar size and amenities.
  • Places in the same neighborhood that have been sold or are currently for sale.

Repairs and Renovations For Property

Once you have done your homework on similar properties and you have an estimated value of the property, now would be time to calculate the cost of repairing the property. This would come down to the investor’s knowledge. They can a.) estimate the cost on their own or b.) work with local, experienced contractors and ask for estimates.

There are several more expenditures to property flipping than meets the eye. Most people think it’s just repairs and renovations, which is not at all the case. Additional hidden costs to the investor can be found when closing the deal, financing for the property, holding the property, and whether or not the investor is looking to flip quickly. Marketing and the entire sale is another factor in the process.

The General Rule of 70%

When it comes to flipping real estate, most investors follow the general rule of 70%, which involves leveraging the ARV and estimation for repair costs. This helps the investor understand the pricing they should ideally pay for the property.

Here’s an example: lets say the property we’re investing in is $300,000. 70% of the After-Repair Value ($300,000 x .70) is $210,0000. So, minus the estimated cost for repairs, lets average about $30,000. In short, you should not be paying any more than about $180,000 for a property of that value ($210,000 – $30,000).

In most cases, this general rule of 70% is just a base guideline; there are other factors that play into the value. Factors include the market, property conditions, and special property features. This being said, trust your intuition when it comes to the evaluation of the property, itself.

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.

Hard Money Loans In The News

Hard Money Loans In The News

It is not often we bring you press releases. However this one from respected prnewswire.com is worth quoting extensively as it explains what Arizona hard money lenders are doing to assist in the current times of need most people are enduring.

Quoted From The Article:

“During these trying times with COVID-19, Hard Money Lenders Arizona is working tirelessly to ensure accessibility and services to their Arizona base of clientele. In an effort to provide more offerings and assistance, they are expanding their loan programs to include commercial hard money loans to residents of Arizona as they may be running into funding challenges in the short term. A commercial hard money loan is dependent on the real estate assets the borrower has. Commercial hard money loans are also called “bridge loans”, “no-doc loans” or “private hard money loans” just to name a few. Loans from traditional lenders decide if a borrower is qualified based on their credit, financial statements, etc., while a commercial hard money loan is strictly based on assets the borrower has. This allows borrowers whose projects don’t necessarily meet the traditional guidelines of most banks and other lenders to receive funding from other reliable private lenders.”

“Potential to receive hard money lending in Arizona falls back on certain criteria including but not limited to credit history, insurability and/or ability to provide property collateral. The company has been built on the foundation and mindset that just because an individual may have a poor credit score does not mean that they should be incapable of receiving lending or financing for any and all real estate or business purposes. ”

“Hard Money Lenders loan programs are designed for Arizona real estate investment professionals and to help make the process of investment funding fast and easy. Their simple loan process enables clients to close purchases in as little as 3 business days. They work with investors buying REOs, short sales, real estate auctions, trustee sales, trustee sale refinances, private party, and even residential construction projects. Their programs focus on single-family residential properties (1-4 unit) all throughout the state of Arizona.”

Source: https://www.prnewswire.com/news-releases/hard-money-lenders-arizona-expanding-loan-programs-to-assist-during-time-of-need-301031830.html

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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