Learn To Be A Fix and Flip Investor: How To Flip Houses With No Money Down

Sunday, April 14, 2019

How To Flip Houses With No Money Down

It would be a lie to say that anyone can flip houses with no money down in Arizona and make a profit. However, it is possible with hard work.

I have flipped over 130 homes in the last 10 years. It is not easy, but once you are able to find an effective strategy it becomes easier and a whole lot of fun. I average about $25,000 in profit per flip. However, I didn’t start out making that type of money. My first house flip I profited $4,500— my second, I walked away with $8,000 in my pocket. And, on my third flip I lost $3,200. Don’t let that intimidate you—I want to be honest concerning this business. After 10 years of flipping homes, I have only lost money on five projects. That equals less than 7% of my deals resulting in losses—not too shabby.

Many people think about becoming real estate investors, but never take actions on that thought. There is a good reason for that; becoming an investor means taking risks and removing yourself out of your comfort zone. However, if you are able to make these changes it will be well worth the time. There are many ways you can flip houses with no money down in Arizona (or very little): wholesaling, buying houses that already have a loan on them and partnering with another investor. However, the most effective way to flip houses with no money down is through private money investors—commonly called hard money investors.

My first flip was actually a home I lived in. When my wife and I first met we both owned homes. Once we decided to get married we chose to sell our homes and buy a fixer upper. We lived there for two years, rehabbed it and sold the property. However, at that point we wanted purchase a nice, new home. About a year later I started getting the itch again to rehab a property. Although I had flipped a house previously—I didn’t have a whole lot of experience. We had also taken our time rehabbing the property. On average it should take about 3 months to fix and another 3-6 months to flip a home.

Hard Money Fix and Flip Loans

Arizona Hard Money Lenders will typically approve more than traditional banks. A benefit to working with an Arizona Hard Money Lender is they will approve not only the property loan but the repairs, as well. Arizona Hard Money Lenders are establishments—and occasionally individuals— who borrow money from investors at a certain interest rate and then lend that same money to real estate investors at a higher rate. Arizona Hard Money Loans are short-term loans that generally have terms from six months to three years. To fix and flip a home with no money down find a lender that will lend on the after-repair-value (ARV). Most lenders will finance at least 70% of the ARV. That means they will lend the borrower 70% of what the house will be valued at after it has been rehabbed. For example, if you buy a house for $105,000—but the ARV is $200,000—the Arizona Hard Money Lender will finance $140,000.

Have you been thinking of getting started as a real estate investor?

If flipping houses in Arizona is something you’ve daydreamed about take that step. Research local Arizona Hard Money Lenders and talk to one. For more information, contact us at level4funding.com. We would be more than happy to get you started in the right direction.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

About the Author: 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 and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.