CLOSE IN 48 HOURS OR LESS! READY TO GET STARTED ON YOUR NEXT DEAL IN ARKANSAS?
A local Investor in Fayetteville was approached by a long-standing homeowner to purchase a house on 4 acres that he had been living in for years. The investor successfully purchased the property at a discount, fixed it up, and now rents the property long-term.
|Location – Fayetteville, AR|
|Loan Amount – $120,000|
|Purchase Price – $150,000|
|Loan Type – Purchase|
|Term – 12 Months – 17 years (Borrower Option)|
|Rehab Amount – $20,000|
|Actual Retail Value – $225,000|
|Profit – $10,000 annual cash flow|
Arkansas has a below-market price-to-rent ratio and it’s actually cheaper to own than rent. Additionally, while most states are seeing appreciation push buyers out of the market, Arkansas still remains much more approachable to invest.
The Future Is Rental Properties
While Arkansas is relatively affordable, prices are forecasted to increase in the coming years. Therefore, investors are beginning to flock to “buy and hold” investment opportunities over quicker flip projects.
In the wake of the COVID pandemic, Arkansas’ economy has steadily improved, in part, because of promising job growth across indsturies. As a result, local demand for housing should continue to increase over the coming weeks and months.
According to Attom Data Solutions’ second-quarter 2021 U.S. Home Sales Report, “the typical single-family home and condo sale across the United States during the second quarter of 2021 generated a profit of $94,500. That was up from $90,000 in the first quarter of 2021 and $60,572 in the second quarter of 2020.” Growing and appealing profit margins for investors make Arkansas a “go-to” state for investors looking to buy distressed properties, fix them, and sell them within 12 months. However, long-term rental properties also present a profitable scenario with ever-growing demand in a sector that was once overshadowed by traditional home buying. Simply put, low inventory has stopped many would-be buyers from achieving ownership and has forced them to continue renting their homes.
"There are not a lot of hard money lenders that finance rural properties in our state, but I am glad EquityMax is one of them."
High LTV / Low Rates / Flexible Term
Minimal Insurance Requirements
Zero Prepayment Penalty
ZERO Credit or Qualification Requirements
No Personal Guarantee Required
Free Comparable and Repair Analysis
Catering to Real Estate Wholesalers
1-3 Day Funding
Minimal Notice to Close
Invest through a Self-Directed IRA or Solo 401K
Net Proceeds from Investing are Tax-Deferred
No Personal Guarantee
EquityMax finances a majority of its Arkansas loans as direct leads from investors, as opposed to more traditional third-party inquiries (i.e. through mortgage brokers).
The great idea about lending in Arkansas is the diverse types of assets that we can lend on, from single family homes, to homes on acreage, to more metro investment opportunities.
It always depends on where the deals are! We always suggest investors cast their net of where to buy as wide and far as possible.
EquityMax lends on mainly residential real estate – inclusive of single family homes, condos, and townhomes. In a state like Arkansas, we focus on more non-traditional investment opportunities, such as vacant land, manufactured homes, and rural property home loans.