Sunday, February 12, 2017

Phoenix People Who Flip Houses: What's the Deal About Hard Money?

Phoenix People Who Flip Houses
Phoenix People Who Flip Houses
Many investors require some sort of financing. Whether it be through a bank, alternative private companies, or through a network, financing can be one of the trickiest things about entering the investment industry. As a result, Phoenix people who flip houses need to know what hard money is.

Flipping a house obviously involves real estate property. Not only that, it is a specific type of property that is typically run down or in need of renovation. Financing institutions look at this process differently than future home owners simply hoping to find the next house for their family.

This is where hard money loans come in. Hard money is typically a higher interest loan provided through private investors or companies. Being asset based, the loans are secured by real property (such as real estate). Because the nature of house flipping is risky, hard money is a common loan option because its design fits the house flipping model well.

Phoenix People Who Flip Houses
Phoenix People Who Flip Houses
Hard money can be an attractive option because you may be able to finance 100% of the home price. This makes your initial investment much more menial as you won’t have to cover the real estate price. Additionally, these loans are less regulated and, consequently, can be easier to obtain quickly and without hassle.

Phoenix people who flip houses should become experts in financing so that they always know what the best option is. Depending on your position, hard money could be the best option and is worth heavily looking into. However, not every situation is the same and the consequence of financing methods should be understood before initiating a deal.


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