Fix and Flip hard money loans

  • Quick Approval and Funding
  • Local Fix and Flip Hard Money Lenders
  • No Upfront Cost or Contracts
  • Rates from 8%

Fix and Flip Hard Money Loans

Fix and flip loans are the perfect tool for investors who are looking for finance their next purchase. Born of necessity, flip and flip hard money loans give real estate professionals access to capital in the matter of days, not weeks or months. More than any types of investments, speed is the name of the game here – the faster you complete your fix, the quicker the flip and higher the rewards. Investors looking to get in and out quickly can utilize private lending to secure otherwise untenable deals (even ask for a cash discount) and secure the required capital required to renovate the property.

 

Investors with a fix and flip strategy always are in the lookout for the next deal – and the next deal doesn’t always wait for your current project to finish. With a private financing you can leverage your capital and make sure the next deal is already lined up. Our unique process gives you an expedient route towards approval, usually within 8-10 days, and focuses only on the asset itself. You can secure capital for purchase, closing costs, permit costs, and remodeling all in one loan. We call this process “asset-based underwriting” – where application process is focused on the asset, not the borrower. This means that financing for flipping houses or multifamily projects can be available for borrowers with bad credit or limited credit history.

 

Asset based lending is a powerful tool for investors because the lenders are evaluating the property first – rather than focusing on the borrower. Traditional banks might be hesitant to provide financing for flipping houses since it is a risky endeavor. In addition, investors with recent short sales and bankruptcies on their records might be disqualified all-together based on their credit history. Asset based lending is focused on the collateral – the way the lender secures the money.

What are the Benefits of Fix and Flip Hard Money Loans?

  1. Fast closing – if you find a good deal but don’t have all the capital to close, using hard money instead of a bank can save you months in approval. Private lenders can close in days, banks will require multiple appraisals and months to close
  2.  Higher Loan to Value – hard money loans for fix and flips can provide you with a higher loan to value or loan to cost, so you can purchase your next deal with less out of pocket cash or graduate to a larger project class
  3.  Custom Loan – you can custom tailor a hard money loan to your needs – they are rarely a fix product that the traditional banks offer

How to get the best fix and flip hard money loan

A lot of times customers call us after they were denied by a couple of companies when they applied for a fix and flip hard money product. Getting rejected is frustrating because a lot of times, investors are sure they found the perfect next investment but companies reject their request for financing without sufficient explanation. Here are some of the reasons your fix and flip application is getting denied:

 

  • You are underestimating the cost of rehab – fix and flips are all about planning for the unexpected. If you are requesting funding for a flip, lenders WILL ask you for some exit plan – cost to renovate plus purchase costs and how much you will sell the property after it is all done. Submit a detailed costs analysis – show the lender that you have a detailed plan with reasonable quotes.
  • Your profit margin is too low – unforeseen costs are an inevitability in a fix and flip. Mold that comes from nowhere, surprise termite infestation, or increased permit costs are just a few examples that can derail a new project. For more information – follow the 70% rule.
  • Your first project is too big – first time flippers want to jump ahead to large project before they get their feet wet. Even if you found a great deal and have the down payment – inexperience may scare off investors if the project is too large.
  • You don’t have any money down – this is perhaps our #1 reason to deny an application. while 100% financing is possible in some cases – lenders want to make sure you are also invested in the project with cash out of your pocket. In the end of the day, lenders don’t want to end up with a half-finished fix and flip halfway around the country.

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