By Noah Brocious – President/RI/Mortgage Loan Originator – Last week we hosted our November Hard Money Isn’t Hard and asked a few members of the audience to describe the real estate market in three words. “Hot, hot, and hot,” one person remarked, and another said, “it’s freaking insane.”
The market fundamentals, our loan volumes, and our eyes on the ground (you, the borrower) all point to a scorching hot market in Phoenix. However, as fix and flip deals become harder to find, especially in the sub $250,000 price range, now is the time to enlist a real estate partner.
Here at Capital Fund I, we act as a check and balance for real estate investors and developers, especially our fix and flip investors. At our core, we are a bank, and we have a responsibility to get the capital that we lend outback. This is why when we are reviewing our borrowers’ deals, we ensure that in the rare chance there is a default, we have a path to get our capital back. However, the most profitable, easiest, and best way to do that is for us to watch our borrowers succeed.
We ensure our borrowers are set up for success from day one through the underwriting process. If our underwriting team concludes a home or property is just junk or a bad deal, they will not be shy about that fact. When a home or deal gets the green light, the underwriting team then looks at our borrowers’ rehab budgets (in acquisition + rehab loans) to ensure costs are in line and if the project is realistic.
In a hot real estate market where great fix and flip deals take more effort to find, you need a trusted real estate partner to act as a check and balance for your investments. With our thorough and accurate (within 3% of ARV) underwriting process, you can trust when Capital Fund 1 puts their dollars behind your deal; it’ll be a good one.