When it’s done right, flipping a house is a great way to turn a quick profit and keep yourself out of the dull 9-5 office routine. Of course, most flippers need to procure funds quickly so they can jump on hot properties in a competitive market. Here’s how.
At 207,000, 2017 saw the most houses flipped in over a decade. And, with the average return on investment sitting at 49.8%, it’s pretty clear that fixing-and-flipping is as hot as ever. This is especially true with high-end housing. Flipped houses valued between $1 million and $2 million shot up by 42%, while those priced between $2 million and $5 million dollars exploded by more than 350%.
So how do you get loans to flip houses? You can go through a bank or broker, but there are some drawbacks to this method. Yes, it’s the tried and true way to do it, but getting a bank loan means having a respectable credit score, a healthy balance in the bank, and verifiable income. It also means having your finances scrutinized ad nauseam, which can often take a month or more.
Hard money loans for flipping houses
Another way to do it is to go through a hard money lender. Hard money lenders aren’t as worried about how good your credit score is, how much you’ve got in your bank account, or how much money you’ve got coming in on a weekly basis. Instead, they’re concerned with collateral. If you have assets to put up, you can sit down with a hard money lender, talk about your plans, and conceivably have the funds within 15 days. That flexibility and speed can be the difference you need to get a leg up on the competition in your market.
Is a hard money loan right for your situation?
Hard money loans to flip houses are typically fast and simple if you have assets to put up as collateral. However, they also come with higher interest rates than a traditional bank loan and are usually due within one to five years. That means they’re great for people who are experienced flippers; ones who have a better idea of what kind of profit can be made and how fast. They also may work for novices who have hired a seasoned contractor. If you fall into one of those categories and you’re interested in getting a loan to flip houses, you may want to sit down with a hard money lender.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.