Financing Options for Flipping Houses
Are you ready to flip houses? Reality TV has made this career seem like the perfect mix of creative design, entrepreneurial passion and easy money. For some, flipping houses can be a very profitable business. Many individuals, however, will struggle to make ends meet and sell houses for a profit. One key ingredient that may first-time flippers are missing is excellent financing. Learn how the best fix and flip financing options can help you earn a profit in this exciting industry.
One option is a traditional mortgage. Bank loans for a home can give you rock-bottom interest rates and excellent monthly payments. However, you’ll also have to work through an extensive application process and wait as long as 90 days to receive approval. It’s tough to compete with self-financed investors when you’re trying to grab the latest deal on the market.
Another option is a private loan. There are two basic types of private loans, hard money from a financial institution or personal loans. A personal loan is typically from a friend or family member who is confident you can make a quick profit and turn your fix and flip passions into a substantial business.
The benefit is that most personal loans come with few strings attached. Your friend or family member will already know you’re reliable, so you won’t have to prove you’ll be able to repay the loan. However, many personal loans come with a different set of unspoken rules. If you’re unable to make a payment or need an extension, this can cause personal issues between you and your friends or family.
Private hard money loans provide the flexibility and fast closing of self-financing. However, you’ll typically need to pay high interest rates. Many lenders also need asset backing to ensure you pay off your loan. It can be a flexible option for a quick fix and flip turnaround. Don’t let real estate options slip away from you as you wait for lengthy loan applications.
There are many financing options available to you even if you can’t afford to self-financing your fix and flip investment. Renovating a house can come with many risks, but you also have the potential of earning an impressive income. Through wise investments and choosing the best financing option available, you’ll enjoy lower interest rates and more flexibility with your financing. Discover how you can finance your next flip project today with a dynamic financing option.