How to Fund Your Fix and Flips in 3 Easy Steps
Do you know how to fund your fix and flips?
Let’s say you come across a fixer upper and you’d like to buy it. Well, the best way to quickly purchase a value-add property before another real estate investor can is with a fix and flip loan (aka, a hard money loan).
But what do you need to do to ensure you get the best fix and flip loan?
Today, we take a look at the first 3 steps of the process. Because if you want to make the biggest profit you can on a deal, then you need to make sure you’re working with the best lender.
Different Lenders, Different Outcomes
Just like properties, real estate lenders come in a variety of shapes and sizes. Some lenders require extensive real estate portfolios, excellent credit scores, and a hefty down payment. These are typically the larger national companies.
On the flip side, some lenders are willing to work with newer investors who have little to no money to lower the risk. And some charge higher rates and less points, while others sneak in hidden junk fees.
It all depends on what works best for you. If you want flexibility, then you should prepare yourself to pay more for your loan.
One of the smartest and easiest ways to find the best lender is to shop around in your area. That’s right. You’ll need to pick up the phone and make some calls. But, trust us. Those calls will be worth it because you’ll end up saving yourself a lot of time, stress, and MONEY!
What Do You Bring to the Table?
If you make things easy for lenders, then you’ll have many of them competing for your business. How can you do that? Well, here are some basic, but valuable tips:
- Maintain a high credit score
- Complete projects on time
- Pay lenders on time
- Create a real estate portfolio that presents completed projects and team members (contractor, insurance agent, title company, etc.)
What Are You Looking For?
Are you okay working with a lender who requires a down payment? Or do you need to find someone who’s okay with little to no money at closing? How about experience? Low rates? Fast closings?
Understanding what you need is vital to a successful real estate deal. So, create a must-have list before you shop around. That way you’re prepared and can find the best fix and flip lender for you and your bank account.
If you complete these 3 easy steps, we can promise your hunt for the perfect lender will get your the results your hope for.
Ready to chat about your next fix and flip deal? Our team is here and ready to help you find the right loan for you!