Looking to get into the fix and flip real estate market but don’t have the upfront capital to get started? With a fix and flip loan, you can get financing quickly, and without the hassle of a standard loan. You’ll be able to get through closing in no time so that all you have to do is fix it up and flip it for a profit. But before you get financing, you should know about the five types of available loans.
- Fix & Flip Hard Money Loans – these loans are secured by real estate and are explicitly designed for fixing and flipping homes. Fix & flip hard money loans generally have lower qualification requirements, meaning home flippers can get financing in as little as two weeks.
- Fix & Flip Cash-Out Refinancing – cash-out refinancing works by first refinancing a homes existing mortgage, paying off that loan, and then using the leftover capital to invest in a new property. However, if financing through this method, home buyers must first pay off all liens against a property before they are free of it.
- Home Equity Lines of Credit – this form of financing is like any other line of credit except that it’s taken out against the preexisting equity of their property. It is considered a lien against the property and must be paid off
- Investment Property Line of Credit- this form of financing is very similar to a home equity line of credit, but rather than financing against a primary property, it is taken out against an investment property.
- Fix & Flip Bridge Loans – this final type of financing is a temporary loan designed to pay for the time between two property transactions. Typically bridge loans are used to buy a new property while you are still trying to sell a previous property.
For more information or help getting financing for your up and coming fix and flip realty company, Coastal Commercial Lending can help meet all your needs!