CROSS COLLATERALIZING PRIVATE MONEY PHOENIX FIX AND FLIP A HOUSE
It was another busy week in the Phoenix Fix and Flip market. We picked up a couple homes for investors with some real great spreads. Both projects were started this week. The Real Estate and Beyond Teamwas developed to assist real estate investors to take advantage of the Phoenix real estate market. The Phoenix real estate market needs capital from investors to poor back into homes that need fix up and sell them for a profit. We need to stabilize neighborhoods and stop the bleeding.
I am working with a new real estate investor that has $40,000 liquid. He asked me if I would know of anyone that would like to partner up to Phoenix Fix and Flip a house. So, I started to ask him more about his goals and financial status. He continued to inform me that he has a paid off house worth about $150,000. So, I asked him if he knew about cross collateralizing. He said NO.
CROSS COLLATERALIZING WITH PRIVATE MONEY PHOENIX FIX AND FLIP
Hard money lenders have been really conservative when evaluating properties when it comes to obtaining hard money on the property. The hard money always wants to be in first lien position on every home. Also, many of them do not allow second liens on the home to avoid further delay if they must foreclose on the property. Hard money lenders allow CROSS COLLATERALIZE to meet their standards so borrower can close on a property. This is also known as a "BLANKET MORTGAGE."
The investor was very impressed with my current knowledge of this technique. I informed him it is only because I have been doing this for the past nine years. Plus, I know the best hard money lenders in town. It is vital to develop a positive relationship with the right people to close more deals.
Real estate is truly a team sport.
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