The concept of flipping homes isn’t something new. In recent years, home flipping has taken an upturn because of rising home prices. As a result, more and more real estate investors are hoping to generate substantial short-term wealth from flipping homes.
For those new to fix and flip, it’s a short-term loan secured by real estate investors for expanding their portfolio. A fix and flip loan is used to purchase an undesirable residential property below market value with the intention of fixing it. After getting the necessary repair work done, the renovated will be quickly sold off to a new buyer. The proceeds will be used to repay the fix and flip loan.
Although investors have been using fix and flip strategy for several years, there are many myths associated with it. This can create a lot of confusion and prevent people from making smart flipping decisions. Here are some common misconceptions people have about home flipping:
You Need To Invest Thousands Of Dollars of Your Own
Contrary to popular opinion, you don’t need to put in thousands of dollars of your own for home flipping. Investors can get fix and loans from private lenders and banks.
Private lenders typically offer loans faster than banks. This is because banks take a lot of time verifying a borrower’s credit score and other financial details.
If you’re looking to secure fix and flip financing within a reasonable time, without going through a bank’s complicated and lengthy loan application process, then you should contact a private lender.
You Have to Repair The Home Yourself
You should hire a professional renovation company for fixing a residential property. A professional remodeling company will complete the remodeling job effectively and quickly. As a result, you can list your home for sale immediately. Time is everything when it comes to flipping homes. A DIY remodeling project may take longer than expected.
The Whole House Needs to Be Upgraded
When it comes to repairs, spend your money on improving the most important features of the house. Features like kitchen upgrades or exterior painting, which will increase the value of the home.
Any Residential Property Is Flippable
The fact is that some homes are not right for fix and flip. Assess the neighborhood and the purchase price, condition and repair costs of the house. These primary factors will help you choose the right property for flipping.
You Can Work With Any Private Lender To Obtain Fix and Flip Financing
Just like the way you need the right property, it’s just as important to connect with the right private lender. There are hundreds of private lenders out there. But, it’s imperative that you pick someone who understands your financial needs and goals.
Interested in investing in fix and flip home? We’ve got you covered! We provide a wide range of fix and flip loans for investors. Click here to find out the basic guidelines for seeking fix and flip financing from Harper Financial.