Hard Money Tips for Real Estate Investors in Phoenix
Hard money lenders always put premium on the property. They evaluate the feasibility of an investment with the market value of the asset being offered as collateral. Real estate investors in major state and international cities will probably have an easy time finding strong rationale for their loan applications. But with real estate properties in Phoenix, there are hurdles that an investor needs to face and overcome to succeed with hard money in Phoenix. What follows are a few of these challenges, followed by some pointers and insights for the real estate investor to consider:
· Geography
Phoenix's 475 sq. mi. land area is a patch in the northern part of the Sonoran Desert in Central Arizona. Unless property buyers have the propensity for arid sands, an investor in Arizona real estate will have to mine for other facets of the city's geography to create an attractive deal for hard money lenders.
Looking for interested buyers of the property prior to loan application is one way to go about it. With prospects already lined up, the property now becomes a quick sell in the mind of a smart private money lender. Commercial property investors can also focus on Phoenix being placed in the center of Arizona, which makes the city a strategic launching pad for market economy.
· Security
The city has a history of high rate of car theft, murder, and organized crime. Criminality, at one point, became a public safety issue for the Phoenix city government. This is a big stumbling block for real estate investors looking for hard money opportunities. Rather than hide this fact and appear dishonest, investors are advised to be transparent to lenders about it.
In doing so, however, it is important to establish how such data is related to the property, and to note of the significant drop in Phoenix's crime rate since 2008. The city's continuous reforms to improve public safety are information worth mentioning.
· Vulnerability
Phoenix suffered major economic setbacks during the 2007 financial crash. People buying properties that time dwindled to a few, while those still paying up mortgages stood to a default and foreclosed their properties. Even so, many residents in Phoenix could still afford to rent. This, then, has given rise to apartment rentals as opportunities for real estate investors.
Phoenix continues to show promising signs of growth in this arena, which has the potential of reviving the city's real estate market. Construction developments are canned in some of the Phoenix's urban villages, particularly in those close to Central City area, such as Encanto, Marydale, Estrella, South Mountain, Laveen, and Camelback East. Suburban growth is happening in Rio Vista, the newest to become a Phoenix urban village.
Welcoming the challenges mentioned above will make investors better at what they do. Selling a Phoenix property to hard money lenders entails describing a vision of success, which is grounded on present facts. When a private money lender sees the picture, sometimes it doesn't matter whether the property is in Phoenix or in the city adjacent to it. Welcoming the challenges mentioned above will make investors better at what they do. Investors who master the skills of jumping over these hurdles will thrive in the real estate market, regardless of where they are making their investments.
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