private lending

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If you’re using a hard money loan to fund your house flipping venture, then you have come to the right place. The steps below outline how the process works so you can get a significant return on your investment on each and every deal.

Research Available Properties

The first step involves narrowing down a suitable property that’s not too hard to flip. Keep in mind that it can be difficult and time-consuming. However, it’s important to take your time. Otherwise, you might end up stuck with a home that’s costly to repair and that won’t sell faster since you’ll be forced to raise the price so you can recover your money. If you’re new to the market and inexperienced, it’s best to first consult with an expert realtor.

Get the Property Appraised

Once you have found a property that fits your bill, you’ll need to have its condition evaluated, so you can have better pricing estimates. Hire an expert inspector to conduct the evaluation, so you don’t miss anything that can come back to eat into your profits. Also, when determining the property’s price, look at other similar recently sold houses and active listings on the same market. Make sure you’re not overvaluing or undervaluing the property.

Apply for a Hard Money Loan

This is the exciting part. A hard money loan can be the perfect private lending solution because lenders generally consider the value of the collateral you’re offering instead of checking out your credit history, income, and other documents.

A hard money loan is a form of private lending because the funds come from individual investors. Typically, a hard money loan has a repayment period of between six months and a year, but loan terms can go up to two or three years in some situations. The terms and conditions for hard money loans may vary, so it’s best to investigate the top private lending options to ensure you find the best loan for your needs.

Flip The Property

Once you have funds in hand, it’s time to hire a contractor and get the project underway.

Get Your Money Back

When you’re done rehabbing the property, the next step is re-evaluating it, then listing it for sale. Aim to sell as fast as possible. Once you sell, you can repay your hard money loan. In a nutshell, that’s how you flip a house using a hard money loan, so use the helpful information above to get started today.