In real estate parlance, a fix and flip refers to a specific type of real estate investment strategy in which the investor purchases a run down or abandoned building, renovates it, and sells it for profit.
It is an exciting trade, one that is just as rewarding for part-time investors as it is for the full-time home flippers who make their living at it. The key to their success is the appropriate use of hard money loans at the correct time during the renovation process.
What Makes Tampa Hard Money Lenders For Fix And Flips So Valuable?
While conventional loans tend to carry lower interest rates, there are a number of reasons why hard money loans are preferable to them for fix and flip investors.
Foremost among these is the fact that, while undergoing a project, a property is costing you more everyday you hold onto it. Keeping a house for 3-4 weeks while a conventional loan works its way towards approval is not ideal, and may eat into your entire profits from the project.
In order to get additional capital quick, it is necessary to put up the property as collateral for a hard money loan. This gets you near-immediate access to cash, so that you can continue working on the property and sell it as quickly as possible.