Fix & Flip Loans
Have you ever been curious about how the stars of the HGTV reality show “Flip or Flop” got their start? They did it using fix and flip loans that are also called rehab loans. Fix and flip loans are short-term loans given to real estate investors who want to buy a residential property, renovate it and then sell it for profit. Flippers stand to make a lot of money when everything is done right.
Since so many people watch “Flip or Flop”, almost everyone understands the process of flipping a house. However, a lot of people are not aware of how fix and flip loans work and what they offer. First off, this kind of loan is only used for single-family homes. Rehab loans can’t be given to fix up and resell apartment buildings, for example. These kinds of loans are also time sensitive. We understand the need to lock in capital as soon as possible because we have worked with numerous real estate investors in California. We offer funding in as little as 24 hours along with these other perks:
- Funding in 24 Hours
- Loan To Value Up To 90%
- 3-60 Months Interest Only
- Starting at just 7.99%*
- Short Sale OK
- Bad Credit OK
- Bankruptcy OK
- Foreclosure OK
If you prefer to email us, fill out the form below and an associate will contact you to review the loan scenario and provide a quote.
Important Considerations for Borrowers
There are three ways to turn your project into a success once you secure a fix and flip loan. First, we strongly suggest you keep all renovation costs at or below budget. The less you spend on renovations, the more money you can potentially make. Next, your renovations must place your property at the maximum value according to the market, and you will need to list and sell the property as fast as you can.
Perhaps the most important is to ensure your personal guarantee on the loan, which is essentially your promise to the lender that you will pay the loan back on the terms upon which you have agreed. Keep in mind that if you don’t repay your loan according to those terms, you will likely default on it and may need to give up your personal assets or be brought to court.
This is another reason why taking the time to carefully research hard money lenders is so important; by doing so, you can make sure you’re entering into an agreement with a lender you can trust and who you can find agreeable terms to sign off on. Unfortunately, there are some dishonest lenders out there who will try to scam people out of their money, so it’s important to do your due diligence as a borrower to ensure you don’t end up in such a situation.
Our Fix and Flip Loan Program
The properties listed under the fix and flip category usually do not meet FHA guidelines. This means that some federal agencies will not give loans for these types of properties. That’s when you need to call us. We usually offer same-day qualification and can likely give you funding within 24 hours.
If you have been wanting to take advantage of the growing fix and flip market in California give us a call!