If you’re wondering how to get fix and flip loans, you have multiple options, allowing you to quickly purchase your property and get your project underway. Whether you’re looking to start a house flipping business or experienced house flipper, you can choose from a variety of fix and flip loans to add to your portfolio and grow your business as a real estate investor.
Below, I’ll discuss some of the best fix and flip loans, how to choose the right one for you, and what to do before approaching a lender for fix and flip financing.
Once you’ve found property and done some research on the condition and the renovations you’d like to do, it’s time to consider your fix and flip loan options. Of course, some options will be better than others, depending on your experience with flipping properties and your credit profile.
Find a Financing Partner
One good option for fix and flip loans that’s a great choice for house flippers who have deep market knowledge and experience with home renovations and house flippers with a well-connected personal network (to find a partner), is to find a financing partner. Many house flippers find themselves in a frustrating position: They have the market knowledge to know what makes a good flipping opportunity, but not the money to see the project to the end. This is where bringing on a partner can be beneficial.
Partners can share in the tasks of finding the flipping opportunity, planning and managing the renovations, and supplying the fix and flip financing. Based on what each partner brings to the table, they share in the profits. Usually, one partner supplies the fix and flip loans, while the other finds the flipping opportunity and oversees the renovation.
Home Equity Loan or Line of Credit
Another great option for fix and flip loans that’s best for flippers who are homeowners and have at least 20% equity in their primary residence is home equity loans or line of credit. A home equity loan (HEL) or home equity line of credit (HELOC) can give you access to funding for flipping, and you can draw on the money as needed. You only pay interest on the money that you use. HELOCs have some of the lowest rates you’ll be able to find. A loan is a lump sum amount, whereas, with a line of credit, you can borrow up to the limit as needed.
Hard Money Loans
Finally, this last option for fix and flip loans is a great choice for borrowers with bad credit and borrowers who can’t arrange alternative financing methods. Hard money loans are non-bank loans from private investors or individuals. Hard money lenders have lower qualification requirements and can provide funding for flipping houses in just one – two weeks.
Ultimately, real estate investment is one of those industries where you primarily learn by doing— the more flips you have under your belt, the more you’ll understand what works and doesn’t work for you in terms of fix and flip loans.
That being said, Real Estate Funding Solutions is always here to help and we are just 1 call or email away with an answer! Let us help you with your fix and flip project, just send us an email at info@realestatefundingsolutions.com or give us a call at 1-855-913-8637 to let us help you get started today!