Fix and flip financing, also known as hard money loans, can have a reputation of being expensive and difficult to obtain. Real hard money loans are simply investments given to a real estate investor by a hard money lender in order to obtain a profit. A hard money lender is just a private lender who often steps in when traditional banks can’t offer the financial support a real estate investor needs. These loans often have a smaller amount of paperwork involved, and the straightforward terms make them easy to understand before signing on the dotted line. The number one benefit of fix and flip financing, though, is that the hard money lender does not focus on the person receiving the loan but rather the property the loan is for. Real estate investors are typically given fix and flip financing based on the strength of the real estate market, and the projections for the property, rather than on the credit history and personal resources of the person asking for the loan.
Fix and flip financing typically has a shorter term than a traditional loan, often between 6 months up to a year. However, the advantage of working with a private lender is the flexibility of rates and terms they can offer in order for you to get the financing you need. If you want to buy a house, make repairs and additions, and keep the property for rental income, you might want a longer term loan at a lower rate. Fix and flip financing can be custom fit to tailor both the real estate investor and the hard money lender.
At Hanson Capital Group, we’re more than just a lender. Are you interested in investing in Real Estate, with fix and flip financing? From our trusted network of business associates to our abundance of experience in the investment industry, we can help you turn a run-of-the-mill deal into an investment steal.