Fix and Flip Loans For Real Estate Investors – What are they and why we should be your #1 option

What is house flipping? 

House flipping is a popular way to make money in real estate investing. It involves buying a property, making improvements and upgrades, and then quickly selling it for a profit. The goal of house flipping is to generate a significant return on investment while minimizing risks. In order to be successful, house flippers need to understand the local market environment as well as how to find and evaluate potential projects that can yield a high return on their investment.

One of the most important aspects of house flipping is having an accurate assessment of value for the properties that are being considered for investment. An accurate analysis will help investors determine which houses are best suited for flipping and what types of repairs and upgrades can lead to the highest returns on investment. Additionally, investors should take into account factors such as current market conditions, tenant demand, housing supply in the area, local housing trends and cost estimates for renovation when assessing potential flips.

Finally, it’s important for house flippers to have realistic expectations about how long it will take to complete their renovations and how much they should expect to make from each flip. Flipping houses requires dedication, hard work and patience — but with the right knowledge, skillset and connections in place it can be very rewarding financially. Investing in real estate offers many benefits including financial freedom and security — but taking the time to do your due diligence can help ensure you get the highest return possible from each project you undertake.

Fix and Flip Loan Requirements

Available in 45 States and Washington DC

• Rates starting from 11%
• Funding up to 85% of Purchase Price
• Funding 100% of the Rehab Costs
• Maximum loan is 75% of the ARV (completed value)
• 620+ Mid Credit Score Required
• Loan Amounts $50K – $5MM on 1-4 unit residential, Condos and Townhomes
• No Prepayment penalty
• Direct Lender
• Fast Closings
• Brokers always protected
• Rural Properties OK at 60-65% of Purchase Price and 100% Repair Cost
• Lots over 2 acres OK as well (nothing over 10 acres)

For the investor who wants to purchase and renovate an investment property in order to sell it or refinance into a longer-term loan

Case Studies – A Few Recently Funded Fix and Flips

Brunswick GA – Fix and Flip of historic home

• Loan Amount $540,000
• Units 1
• Loan to cost 78%
• Term 12 months
• Purchase Price $461,000
• Budget $180,000
• ARV $840,000

Fix and Flip Loans

Fix and Flip Loans for Beginners

Fix and flip loans for beginners provide an excellent way to get into real estate investing with minimal funds, and fix and flip lenders can make all the difference in a beginner’s success. Due to the speed at which fix and flip lenders process applications, borrowers do not have to worry about complicated application processes or lengthy waiting times for approval. In addition, although fix and flip hard money loans often come with higher interest rates than traditional mortgages, they are much easier to qualify for since fix and flip lenders evaluate applicants based on the deal and their mid credit score, not their personal income. You can start a successful fix and flip business as a beginner with the right lender by your side.

Beginning real estate investors may find fix and flip hard money loans attractive. Hard money loans can be used to cover the upfront costs of purchasing a property and renovating it. They usually require less of a down payment than traditional mortgages, which makes them an ideal choice for those just starting out in the world of real estate investing. In addition, hard money lenders typically have fewer restrictions than traditional lenders, so it’s easier to get approved with less paperwork. However, hard money loans also carry higher interest rates than other financing options such as mortgage loans. As such, it’s important to do your research before committing to any type of loan.

What are Fix and Flip Loans in Real Estate Investing?

A fix and flip loan allows investors to buy properties with the intention of remodeling them and reselling them for a profit. As a result of these loans, investors can access capital more quickly, making it easier to take advantage of real estate investment opportunities.

In order to secure a fix and flip funding, investors must have enough funds to pay closing costs, including title and transfer fees, as well as a down payment of approximately 20% of the purchase price. The lender will then provide the remaining funds for the purchase as well as the repair money. The majority of lenders also require borrowers to keep some extra funds on hand in case unexpected expenses arise during renovations.

The investor must complete renovations quickly in order to capitalize on short-term profits and take advantage of market conditions. A fix and flip loan features a shorter repayment period than a traditional mortgage, usually between 6 months and 1 year. A renovated property can be sold after the repayment period if all goes well, and investors will profit from their investment.

Why Choose Fix and Flip Loans For Your Next Project?

Fix and Flip Loans are a vital tool for real estate investors. It is a loan made by a hard money lender for the investor to buy, fix and sell a house. More recently, many investors have been rehabbing houses and then renting them out to hold as a long term rental.

Banks just do not understand that you can buy a property, put some money into it, and it could be worth a considerable amount more once you do this.

Yes, I know banks have their 203k program, but closings on those are mostly limited to homeowners (this is not an investor product) and typically these are not quick easy closings like hard money loans are.

Not sure which markets you should be looking at (if you fix and flip outside your home market), then this article “where to invest as a fix and flipper in 2022” is a great read for you.