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Monday, September 25, 2023
😎Do you have bad credit or poor credit and want to buy a home?
Monday, September 18, 2023
😇 See what others are doing in the fix and flip business. 💥
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Wednesday, September 13, 2023
Ways To Flip Houses With No Money & Bad Credit
Nowhere does it say an investor needs to fund a deal with their money. As it turns out, there are several options for funding a deal made available to today's investors, none of which will require you to use capital from your pocket. It's pretty easy to argue that using other people's money is the gold standard, at least when investing in real estate. If for nothing else, private lenders, hard money lenders, and any house-flipping investors interested in making money are all more than viable options to seek out for your next deal. Here are a few options to help you learn how to flip a house with no money:
1. Private Lenders
More often than not, private lenders will serve as an investor's most significant funding source. After all, private money lenders are essentially banks without the endless hoops to jump through what most traditional lenders have become synonymous with. That said, Arizona private lenders are anyone with a few extra dollars in their pocket, a desire to invest, and a propensity to have their "ears bent." Perhaps even more importantly, they are not associated with a financial institution or a government-backed agency, such as Fannie Mae or Freddie Mac. That's an important distinction; they can make their own rules.
With the ability to set their parameters, Arizona private money lenders will typically come at a steep price; it's not uncommon for their fee to rest somewhere in the neighborhood of six and 12 percent, but I digress. While the average private money lender rate is slightly higher than a traditional lender's, they can have the money in an investor's hand in a few days or even hours. Therein lies the most significant benefit of working with private money lenders: speed of implementation. The slightly higher interest rate is well worth the cost of admission if it means an investor can secure funding in as little time as possible. Not surprisingly, most investors will find that the speed at which they can make an offer is more important than the interest rate it comes with. On the other hand, traditional banks may take as long as 30 to 45 days to close on a loan or just long enough to let a deal slip through your fingers.
Most private money lenders will require a bit of an insurance policy or, more specifically, a promissory note and a mortgage or trust deed on the subject property. Some private lenders will even want borrowers to take it further and guarantee the loan with their assets, but everything is negotiable.
2. Hard Money Lenders
In their simplest form, hard money lenders are lending companies that offer specialized short-term real estate-backed loans. Unlike their private money counterparts, they are affiliated with a company specializing in lending. However, Arizona hard money lenders typically offer shorter loan terms to avoid confusion with traditional lending institutions. Transactional lenders will offer loans up to 15 and 30 years, but Phoenix hard money lenders tend to stick with a six-month to two-year window.
Besides their affiliation with an actual company, hard money lenders will operate much like private money lenders. Not only are their lending guidelines much looser than traditional institutions, but their rates are also slightly higher. Hard money lenders in Arizona usually ask for about 11 to 15 percent and about five points (additional upfront percentage fees based on the loan amount). However, it is worth noting that there are no universal Arizona hard money lender guidelines; each will be complete with a different set of criteria.
According to New England Home Buyers experts, "You can fund all home repairs using hard money lenders. Unlike traditional bank loans, hard money borrowing is not contingent on your creditworthiness. However, fees and interest rates for hard money loans are frequently higher. Note that interest rates might range from 8% to 15%, and points can range from one to five".
It is also important to note that most Arizona hard money lenders will usually only loan a percentage of the purchase price — typically around 70 percent, to be exact. That will require most investors to look elsewhere if they don't want to spend any money out of their pockets, perhaps a private lender.
What Is The 70% Rule In House Fix and Flip Lender?
Home flippers have a straightforward business model: they buy a house for a low price, renovate it, and then resell it for a more fantastic price. The purpose of a flipper is to buy low and sell high to maximize their earnings. When flippers are looking at real estate listings, the 70 percent rule can come in handy. Essentially, it states that investors should pay no more than 70% of a property's after-repair value minus the cost of the repairs required to refurbish it.
A property's after-repair value, or ARV, is the amount a home could sell for after being renovated by a fix and flipper. When purchasing a home to flip, investors must estimate how much the property will sell for after it has been renovated. They can then multiply that figure by 70% and deduct it from the estimated renovation cost. The result is the most that flippers should be willing to pay for that home or property. The formula for the 70% rule is:
After-repair value (ARV) ✕ .70 − Estimated repair costs = Maximum buying price
The critical thing to remember is that the 70% rule is merely a guideline. Before purchasing a house, you should research market conditions, consult with real estate professionals to acquire a more realistic resale estimate, and meet with contractors to determine how much repairs will cost and which upgrades are required.
How To Find Arizona Hard Money Lenders
Hard money lenders are located nationwide; you need to know how to find them. The easiest way to find them is by searching online for Arizona or Phoenix hard money lenders in your area. You will find results for companies with hard money loans that you can contact here. Attending real estate investor meetings is a great way to network with Arizona hard money lenders looking to work with potential borrowers. You can also reach out to other real estate professionals in your network who have experience working with these lenders or know of a contact you can contact.
NCO Enterprises LLC
Dba Setabay Private Hard Money
26731 N 90th Drive
Peoria AZ 85383
Telephone: 623-582-4444
NMLS 2062278 NMLS 1118493
Dba Setabay Private Hard Money
26731 N 90th Drive
Peoria AZ 85383
Telephone: 623-582-4444
NMLS 2062278 NMLS 1118493
Equal Housing Opportunity. This is not a Good Faith Estimate nor a Guarantee to lend and should not be considered as such. Costs, rates, estimates, and terms can only be determined after completing an application. Actual payments will vary based on your situation and current rates. APR for loans ranges from 7.99 - 29.5% and is based on Credit Score, Down Payment, LTV, and Income. Mortgage rates could change daily. For more accurate and personalized results, please call 623 582 4444 to talk to a licensed mortgage expert. Terms and conditions of all loan programs are subject to change without notice. NCO Enterprises LLC Dba Setabay Private Hard Money 26731 N 90th Drive Peoria AZ 85383 Telephone: 623-582-4444 NMLS 2062278 NMLS 1118493 This email is for the exclusive use of the intended recipients and may contain privileged and confidential information. If you are not an intended recipient, please notify the sender, delete the email from your computer, and do not copy or disclose it to anyone else. Your receipt of this message is not intended to waive any applicable privilege. Neither this email nor any attachments establish a client relationship, constitute an electronic signature, or provide consent to contract electronically unless expressed by Matt Prosory RI/CEO, in this email or an attachment. To the extent, this message includes any tax or legal advice. This message is not intended or written by the sender to be used, and cannot be used, for legal or tax purposes or advice. This email is an advertisement.
Monday, September 11, 2023
People are making a lot of MOOLA in Real Estate Are YOU?
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Wednesday, September 6, 2023
Are Home Flippers Get Burned by US Housing Market's Sudden Slump?
After an abrupt end to the US housing boom, home flippers who were winning big just months ago are now racing to stem losses.
Since January, the doubling of mortgage rates has crushed buyer demand and depressed values in investors' most favored locations, from Phoenix and Las Vegas to Jacksonville, Florida. It's a swift turnabout for flippers such as those stuck with homes to sell and loans to pay.
Investors say, "It's a high-risk, high-reward business — and now we're facing the high risk, and I'm just praying for break even."
Flippers with loans must repay them, and rising interest rates make carrying costs even more significant. Their troubles can reverberate across the market: Just as investors bid prices higher on the way up, they can accelerate the move downward.
For most fix and flippers, the focus will be on selling, and the faster, the better. A small number will keep buying even though finding truly undervalued homes is near impossible and a guessing game of how far the market will drop.
Home-flipping activity reached a record at the start of the year, making up one in 10 transactions, surpassing the levels in the last bubble, according to Attom, an Irvine, California-based data provider, which tracked sales of properties that previously sold within the last 12 months. While the share remains elevated, it fell to 8.2% in the second quarter of 2023.
Conditions have deteriorated more since then, with mortgage rates near the highest level in 20 years. Demand has cooled particularly fast in Sun Belt markets such as Phoenix, Jacksonville, and Atlanta, pandemic boom areas where affordability has been strained. Fix and Flippers made up about 14% of transactions in those regions in the second quarter, but those shares sank in July and August, according to more recent monthly data provided by Attom.
Phoenix property investors have had to slash prices after the slowdown caught investors. A lot of investors are getting hammered.
Losses will grow, but even thin margins are a big problem when you're a full-time flipper.
We have hard-money loans with 10% to 14% interest rates. It's a constant dance — do I wait it out, or does the price drop? Both cost money.
For the most part, investors are paying back their loans, said Matt Prosory RI/Broker at Level 4 Funding, a hard-money lender in Phoenix, Colorado, and Texas. The default rate was 1.25%, which has climbed to 2.5% in the past two months. But it remains below pre-pandemic norms.
Matt said fix and flippers with nicely renovated turn-key properties will stand out in this market. But it will be painful for those who overpaid, counting on rapid appreciation to make them money, he said.
"Lots of them, in hindsight, were making bad buys. Anybody fix and flipping right now must look closely at the property pricing: Price it to sell. Today is not the time to get greedy.
Phoenix flippers are trying to put things in perspective. Flippers have purchased much more over the last two years than they will likely lose. Fix and Flippers are giving back the money they made.
I ask my flippers if flipping is dead or at least dying. Here in the Phoenix, Arizona, metro area, I have watched the margin on deals become slimmer and slimmer. During the past few years, television shows and seminars have flooded the flipping market with people who believe flipping homes is an easy way to riches. Trustee auction prices are near MLS prices (retail), and I cannot believe what people are paying.
I recommend that flippers take an extended vacation and return later to see how the market is going.
NCO Enterprises LLC
Dba Setabay Private Hard Money
26731 N 90th Drive
Peoria AZ 85383
Telephone: 623-582-4444
NMLS 2062278 NMLS 1118493
Dba Setabay Private Hard Money
26731 N 90th Drive
Peoria AZ 85383
Telephone: 623-582-4444
NMLS 2062278 NMLS 1118493
Equal Housing Opportunity. This is not a Good Faith Estimate nor a Guarantee to lend and should not be considered as such. Costs, rates, estimates, and terms can only be determined after completing an application. Actual payments will vary based on your situation and current rates. APR for loans ranges from 7.99 - 29.5% and is based on Credit Score, Down Payment, LTV, and Income. Mortgage rates could change daily. For more accurate and personalized results, please call 623 582 4444 to talk to a licensed mortgage expert. Terms and conditions of all loan programs are subject to change without notice. NCO Enterprises LLC Dba Setabay Private Hard Money 26731 N 90th Drive Peoria AZ 85383 Telephone: 623-582-4444 NMLS 2062278 NMLS 1118493 This email is for the exclusive use of the intended recipients and may contain privileged and confidential information. If you are not an intended recipient, please notify the sender, delete the email from your computer, and do not copy or disclose it to anyone else. Your receipt of this message is not intended to waive any applicable privilege. Neither this email nor any attachments establish a client relationship, constitute an electronic signature, or provide consent to contract electronically unless expressed by Matt Prosory RI/CEO, in this email or an attachment. To the extent, this message includes any tax or legal advice. This message is not intended or written by the sender to be used, and cannot be used, for legal or tax purposes or advice. This email is an advertisement.
Monday, September 4, 2023
Are you making moola flipping homes? ✅💯🔆
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As you may know, Level 4 Funding is a hard money lender, and we help many people realize their dreams, especially those who focus on 
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