If you’re new to the world of fix and flip you’ll need to become familiar with some terms that you will hear when working with a hard money Lender .
Fix and flip professionals have tons of verbiage, acronyms, and terms that you may not be familiar with if you’re new to the investment world. Each of these terms is important because they explain bits and pieces of the process and information that you’ll need to be successful at fixing and flipping.
A Arizona Hard Money Lender will throw some of these terms around as well so knowing them before you apply for your loan will give you a leg up. When you’re applying here are some terms your Arizona Hard Money Lender may use:
This stands for the After Repair Value. It’s the number your property is expected to be worth after you complete repairs and upgrades.
This is one you’ll hear often and stands for heating, ventilating, and air conditioning.
A Competitive Market Analysis is what you can use to come up with your ARV based on other comparable homes in the area.
Your return on investment is the amount you’re expected gain from your fix and flip after paying off all loans and purchasing necessary tools and project materials.
This is the maximum allowable offer – or what you’re willing to pay for a property. Your Arizona Hard Money Lender will need to know this number before approving your loan.
A scope of work lets your Arizona Hard Money Lender know what your plans are for repairing and upgrading the property. It’s a comprehensive list of work will show you have a plan set up for your investment property.
As a novice fix and flipper you’re going to run into terms and acronyms that you don’t know, but learning the ones listed above is a great place to start. A Arizona Hard Money Lender will want to know that you’ve done your research and you’re prepared to make a sound investment and be able to repay your loan.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
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 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.