Fix And Flip Loans
Fix and flip loans are utilized by individuals as well as corporations all across the United States to purchase a home with the goal of fixing up the house in order to flip it for a profit. This type of hard money loan is vital for those who are looking to secure a house to flip or need capital in order to fund the repairs for the home. Either way it is important to learn more about fix and flip loans to see if it is the right type of hard money loan for you or if there is a better loan type for your project.
Table of Contents
What Is A Fix and Flip Loan?
A Fix and flip loan is a private real estate loan that is used specifically for buying a residential home, repairing the home, and then selling it for a profit. The capital from the loan is used exclusively for purchasing the home and paying for the repair of the home. The residential real estate that are purchased with fix and flip loans are typically distressed property or homes that need significant repairs but still show an opportunity to be flipped for a profit.
A hard money fix and flip loan is also referred to as a home flipping loan because it is utilized specifically for flipping a home. This type of loan is typically a short-term loan deal that lasts on average from six to nine months as this is the average time it takes to repair a residential home for a flip. Since there are opportunities to flip residential homes popping up constantly, it is vital to be able to secure capital quickly in order to purchase the home and then have the cash flow to repair the home.
What Are The Benefits of A Fix and Flip Loan?
The main benefit of a fix and flip loan is that it allows the individual or corporation to get capital to flip a residential home very quickly. These short-term loans will allow you to apply and then get funding in just a few days compared to a traditional bank loan that can take up to a few months. Below are other benefits that a hard money house flipping loan can provide.
- The capital is secured in a very quick manner compared to traditional real estate loans. Since single family homes can sell very quickly, it is vital to be able to get capital is quickly as possible.
- The loan terms are flexible to be customized for your specific project. Since the loan is from a private real estate lender the terms and rates can be customizable for your project.
- The requirements to secure capital from a fix and flip loan is much less strenuous compared to working with traditional bankers.
Do I Qualify For A House Flipping Loan?
A hard money fix and flip loan can be easy and simple to apply for compared to working with a traditional bank loan. A traditional loan will require mountains of paperwork, a business plan, high credit score, and will typically require a proven history of success with residential real estate. Whereas as working with a private real estate lender to secure a fix and flip loan you will be able to secure capital with a less strenuous qualification process.
If you are interested in applying for a house flipping loan or enquiring about more information then our network of private lenders can help you. Fill out the form at the bottom of the page to apply for a free loan quote.
Other Types of Private Real Estate Loans
Our network has years of experience working with a wide variety of different private real estate loans. There are different types of loans that a great for different types if projects and ventures. Learn more about other hard money loan types.
Apply For A Hard Money Fix and Flip Loan Quote
Fill out the form below for a free loan quote and to learn how our private lending network can help you with your next project.