We have all heard of house-flipping, right? Maybe we have heard of a friend diving into a new venture, or seen a show on television about the latest and greatest flip project. It sounds lavish and plush, with the ability to provide tremendous profits. In 2015, the Average Gross Profit on a house flip was $55,000. Metropolitan areas were booming as well; Philadelphia yielded a return on investment of 98.4%. And while these numbers scream “green,” without an adequate amount of funds up-front, the flipping endeavor will surely fail. Allow us to introduce you to rehab loans.
What’s a Hard Money Rehab Loan?
A hard money rehab loan allows homebuyers and homeowners to gain the funds necessary for the flipping process, by offering the property owned as collateral. It is very similar to a construction loan. However, rehab loans offer the ability to obtain a much larger loan amount. Borrowers must routinely make monthly payments, and demonstrate a 630 Mid-FICO score. We know that time is sensitive and that there are often deadlines on important projects during the house flipping process, which is why decisions on hard money rehab loans are made on the same-day, and are broker protected.
I Flipped My Unit, but I am Not Quite Ready to Sell
While some of you interested in flipping may be doing so strictly to buy and sell homes in order to turn a profit quickly, investors and landlords may prefer an alternative strategy. They may choose to buy the unit, flip it, and then keep the unit as a rental. Obviously, it would take a long while to earn back your investment if that’s the case! Hard Money Lenders NLDS Corp offers a 30 year loan for those looking to keep their property without going to the bank. This program allows you to hold the property long term while cashing out on investment properties. While this is more of a soft money program than a hard money program, it is truly revolutionary and one-of-a-kind. The 30 year rates are fixed, making it an ideal solution for landlords and investors.
The resources and options available are abundant. No matter what your experience in the house flipping industry, a hard money rehab loan could very well be the perfect opportunity for your funding needs. Our dedicated team here at NLDS Corp can come up with the best course of action in order to implement a successful strategy.