FIX AND FLIPS Are They Beneficial?

FIX AND FLIPS Are They Beneficial?

Fix and flips are mostly talked about by real estate investors. They make it easy for you to bring in income and gain profits by buying, renovating and selling properties. According to the ATTOM data solutions (Q3 2017) house flipping report, 153,727 single family houses and condos were flipped. Reaping benefits by purchasing and selling properties is not possible if you do not have sufficient money. However, fix and flip loans are a great option to avail the real estate opportunities. The loans help the buyer to purchase the property and get access to the funds for refurbishment. Once for the best things about fix and flip loans is that they get quick approvals. If you have all the required documents with you, you can submit them and get the loans within few days. The ease of getting the loans makes fix and flips overshadow other traditional financing institutions that might take months to process the request. You can get the loans regardless of the conditions of the properties. If a property is in a deteriorated state or there is a foreclosure lingering on it, it gets difficult for the borrower to get funds from banks. Banks have strict rules when it comes to choosing a property for loans. In the tough situation, opting for fix and flip loans is a wise decision. If you want to buy a property in order to flip it, you need to spend a hefty amount on the renovation and repair. With fix and flips, the lender will have a reserved loan for the rejuvenation. You don’t have to kill your wallets to...
A Guide to Managing Hard Money Loans

A Guide to Managing Hard Money Loans

For new or cash-strapped investors with poor credit histories, getting a bank loan can be an uphill battle. Since the financial crisis of 2008, banks and conventional lenders have become much more conservative in underwriting of loans. As a result, many real estate investors do not meet the lending criteria set by banks and other traditional lending companies. Fortunately, alternative loans give hope to real estate investors with flawed credit history seeking financing.  One word that comes to mind when we speak about alternative financing is hard money. Hard money is the most widely used alternative loan product. Issued by a private or non-institutional lender, hard money loans are used for financing commercial real estate projects. Hard Money Loan 101 A hard money loan is a short-term alternative loan. In order to apply for hard money financing, you need to submit collateral to your lender. While interest rates on hard money loans are usually higher than bank or conventional loan rates, hard money are easier, quicker to obtain than traditional loans. At the same time, you can repay the loan before the maturity date. Unlike bank loans, you won’t have to worry about a prepayment penalty with hard money. How To Become A Successful Hard Money Loan Borrower Once you’ve received the loan from a private lender, it is imperative that you follow proper debt management practices. Here are some simple ways to manage and close hard money deals successfully: Planning First off, you need to know your loan and real estate project. The more information you obtain, you can plan loan repayment much more effectively. For your real...