You have probably heard about people looking to fix up homes so they can then sell them to other buyers for a profit. Perhaps you’ve even looked into getting involved in this exciting field yourself. If that is the case, you should be aware that successful flippers make use of what are known as fix and flip loans. These are loans that allow access to the short-term financing needed in order to buy homes quickly and fix them. If you have any dreams of joining this line of work, then you need to know how to access this fast funding for yourself.
Short-Term Lending
There is no use in taking out a long-term loan if you only intend to buy a home and resell it immediately. You could be putting your potential profits in jeopardy if you take out a loan for longer than you truly need it, or if you borrow a loan that doesn’t have favorable terms. Thus, fix and flip loans exist to meet this demand.
What you are asking for with a fix and flip loan is the option to borrow enough to buy a house, but with a loan term that is anywhere from 90 days to 12 months. You are NOT looking to borrow at a traditional mortgage length of 15 to 30 years because you are not intending to live in this house yourself. All you want to do is fix up the house and then sell it to the next person for a profit. Therefore, you need to take advantage of short-term fix and flip loans.
Speedy Lending
Another attribute that any borrower of a fix and flip loan needs when making their borrow selections is the speed at which lenders can get them the money. The truth is that no one likes to wait for a loan to be approved, but home flippers are particularly impatient as they know that waiting around for this process to finalize means that someone else is getting a jump start on the house they want to buy. They need a loan that they can clear quickly so they can get their bid in on the home and get it locked down. Lenders who can make these loans rapidly are always in the best position to get as large of a customer base as possible.
If you are intending to get involved in the fix and flip market, it is essential that you seek out short-term lending with quick speed potential. This type of fast funding will be an asset to your new business. Get in touch with us today to get started securing the loan you need.