3 Important Loan Tips for Fix and Flip Properties

Fix and flip properties are some of the most appealing real estate deals today for experienced buyers and newbies looking to get into what’s become a very lucrative market. But it’s not exactly as easy as making a few cosmetic fixes and then putting it back on the market for a higher price tag. 

There are so many TV shows and social media profiles that make it look like such a fun and profitable gig – but there is a lot that goes into actually getting a house flipped and making money in the process. Still, most homes being bought today are being flipped, so it’s worth knowing more about. 

As a first step in pursuing a fix or flip property, you’re going to need funding. This step is necessary before any new curb appeal of sold signs goes up. 

Here are 3 important loan tips for fix or flip properties. 

Choose a Private Lender

The great thing about going with a private lender is that there is less red tape and guidelines like with conventional banks. That means you can secure the money you need fairly quickly with flexible terms and qualifications.

Request a Hard Money Loan

Hard money loans are the way to go because they can be obtained fairly easily and quickly. That’s because they are backed and secured by real estate or other collateral. Meaning, its value acts as a guarantee if anything goes wrong or a loan cannot be repaid.

Know Your Competition 

This last point is as much as securing financing for your fix and flip investment as it is for finding success in this market. 

If you want to get the financing to get started, then you need to know what the interest rates will be on the loans, how much it’s going to cost to repair and how quickly you’ll need to sell to turn a profit. Understanding the other properties in the area, what they’re selling for all play a role in mastering the equation.

Ready to get started with Fix and Flips? Need a loan to get started? Contact us today!