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“Flipping” can be a rewarding and surprisingly enjoyable way to make money for people that are just starting to think about making property development a significant means of income. It means buying a home, not for the purpose of living in it, but improving it, adding value to it, and making it even more desirable so you can sell it to someone that really does want to live in it, and give that new owner an opportunity to live in a much improved home while you earn a profit.

But once you’ve acquired a taste for this type of dynamic and interesting business, you have to understand that you are, in fact, a business person now. And if you see more opportunities for flipping that you’d like to take advantage of, we can be of great help.

Investing With Discipline

Once you’ve decided that flipping real estate is a major source of income, it’s much better for everyone involved to treat this venture as a true business. You should look into the appropriate tax laws for your state about how properly conduct yourself. If the need calls for it, you may even want to consider formally declaring this a business for yourself, which, as a corporation can open up even more possibilities to in terms of financing, even from us.

The important thing, however, is to understand that as a business, you have to conduct yourself with professionalism and efficiency. Flipping homes only makes sense if you’re making more money than you’re spending, and you’re making that money within a short enough timeframe that your profits don’t suffer. This often means needing to act fast, either on the purchase itself, the renovations, or both.

Letting Professionals Help

This is where we come in. For people that are moving fast on properties, it’s imperative to get timely approvals on loans in order to move forward. Hard money loans and bridge loans are one of those ways that you can get much faster financing, and still provide you with enough leeway that if you want to transition back to a more traditional bank loan with lower interest rates, you eventually can.

However, it’s important to make sure that your finances are in order, though the requirements may be different. Where a traditional bank loan looks at your current financial worth and prospects, a hard money or bridge loan is more interested in the profit potential of the project you’re pursuing. Due diligence is still important in this regard and you need to prove that you’ve done the research and pursued the avenues that prove the project you’re working on is one that will yield some good business for yourself once it reaches completion.

This is why even for flipping real estate, good business skills are essential. Get a feel for the financing and the rules and regulations of property development, and, perhaps more importantly, get a sense of the real estate business in your area of focus. If you know the region well, and can spot an up and coming opportunity, this can only help you cement your business success.