If you’re using a Arizona Hard Money Loan to fix and flip a property, there are some pitfalls you may encounter. Here’s some things you should avoid to get the best ROI on your investment property.
Not all fix and flips are created equal. There are bumps in the road that you might encounter and it’s important to see them coming and make sure you don’t fall prey to the pitfalls of an unsuccessful fix and flip. Your Arizona Hard Money Loan needs to be used responsibly and efficiently so you don’t lose money.
Here are some things you should be aware of when completing your first flip and flip using a Arizona Hard Money Loan.
Going it Alone
The most successful investors have a team of trusted vendors from real estate agents to lawyers. First time flippers and investors can run into unforeseen issues so having a team in place that you can go to when hiccups happen can help you from hitting the point of no return with your fix and flip.
Not Having Good Property Insurance
Not only can unforeseen issues arise with the property like an electrical fire, but you’re going to have people in and out of the property so liability insurance is a must. It’s an added expense that won’t seem important until you don’t have it and you’re neck deep in litigation. Always, always protect your investment.
Holding On Too Long
Of course everyone wants to sell their fix and flip for top dollar, but holding out for a few thousand more while incurring costs like taxes and HOA dues can end up costing money in the long run.
Overdoing the Rehab
This is a sure fire way to make sure you won’t get a good return on your investment. You want to make sound decisions on your upgrades without going overboard and investing more than you’ll get back when you sell. A cost/benefit analysis can help you make those decisions in an objective way and ensure you’re using your Arizona Hard Money Loan responsibly.
To learn more about how a Arizona Hard Money Loan can help you fund your first fix and flip investment, call Level 4 Funding today!
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.