The economy is thriving these days, especially when you look in the real estate sector. Everywhere you look, on tv, on social media people are flipping houses as an income! One way they can do that is through a fix and flip loan.
Fix and Flip Profitability
In 2017, the average profit for flipping houses came out to just over $68,000. That is per property, with an average of more than 200,000 homes being renovated. That, my friend, is a lot of money. Flipping houses isn’t an inexpensive venture either, you have to either be independently wealthy or you need a good fix and flip loan from a great lender.
Why Fix and Flip Lenders
Imagine trying to afford to purchase the property, then renovating the property and having a buyer when you need to sell the property without enough money. Fortunately, there are several options that you will find at Private Money Lending Guide from a number of lenders in our directory. When you have a list of lenders ready to invest in your project it gives you the ability to purchase the property you want and get your project started without any delays.
It doesn’t matter how many flips you have done, a list of lenders for your fix and flip loan is important to add to your portfolio. Private Money Lending Guide can point you in the right direction, and helping you grow your business in real estate investing.
What You Need To Know
First, when you are getting started in flipping, a traditional loan is not the best option for you. There are four things to have financed with your fix and flip loan.
- The purchase price of the property and be prepared you will need to bring at a minimum of 20% to close depending on which lender you choose.
- The “holding Cost” or insurance, HOA fees, other fees that come with homeownership while you are doing your renovations.
- The cost of the renovations including the cost of hiring labor.
- Closing costs and realtor fees when you are ready to sell your property after all your renovations are complete.
As a flipper, start out by building up your down payment. Grow your network of lenders and of friends. Build up your down payment, research the address and estimate your projected project fees. Although it seems like a lot once you have a network of lenders at your fingertips, then fix and flip loans will be no problem.