Finding the Right Property
Understanding what makes an ideal fix and flip house and then finding the funds to buy it isn’t always easy. A borrower needs to do a good deal of research and get the right financing for the best deal. While lenders may differ on their requirements, there are some basic factors, which most use to make their final decisions. Everything depends on the location of the property. First, do a search of comparable houses sold in the location area in the past year. Establishing this price with provide the ARV or the After Repair Value of the house you are looking to flip. This figure will also be the basis of the loan amount you can expect to receive on the property. Second, gather information about the neighborhood, such as; whether the property has a housing association, any zoning restrictions, or upcoming construction and nearby shopping areas can also be helpful in understanding the properties potential value. Taking both interior and external pictures of anything requiring repair or remodeling including landscaping after an inspection of the property are useful tools when submitting an inquiry to the lender.
Getting the Financing
Once you have gathered all of the information above, reach out to a hard money lender to discuss the financing options. Hard money lenders can provide you with a quick close which is helpful when taking on a fix and flip property. Quality hard money lenders provide shorter term loans with no pre-payment penalties. When you do all the necessary changes to the property and place back on the market, there are no extra fees added to pay the loan off before the term has ended. Contact us today to find out how we can make real estate investing easier for you! Already have a specific property already in mind? Check out our loan application for a fast detailed response under our borrower tab by clicking here.