Fixing and flipping homes is an exciting way to get more out of your real estate investment.
Whether you’re looking to sell your current real estate or just launching a fix and flip business strategy, find out how the best hard money lenders in California can help you succeed.
Find the Right Neighborhood
The most important factor of a fix and flip property is location. Renovating a home in a less-than-desirable location or a neighborhood that isn’t growing may not produce the fast sale and improved price you want.
Instead, search for up-and-coming neighborhoods with great earning potential. It may be difficult to find these properties, so work with a reputable real estate agent in your chosen neighborhood to hear first about hot properties coming on the market.
Be sure you can improve the property and still ask for a higher price. Don’t invest so much into a single property that it becomes the most expensive property on the street, but look for a fixer-upper that needs a few updates to bring it up to the middle or upper middle of property values in the area. This will help make a quick sale at or above the asking price.
The best fix and flip properties go fast. You’ll need to have cash or a quick loan option available to get the most out of your fix and flip investment strategy. A traditional bank loan may not be available for properties that need to be fixed before they are resold. Even if you can secure a loan, this process may be too lengthy. Another investor can jump in with a cash offer and take a property.
Use a Hard Money Loan
Local hard money lenders have the solution for you. Instead of waiting for a loan to be approved, work with a reliable lender who can give you cash in no time. Compared to a traditional loan, hard money loans act remarkably fast to produce the kind of turnaround you need to secure a property, hire a reliable contractor and make a quick sale.
Bridge loans are perfect for this type of investment. The short-term nature of a fix and flip project means you aren’t as concerned about the interest rate, but are more concerned with fast approval times and flexible funding.
Hard money loans aren’t only for making the down payment on a property. Instead, you can use this capital to invest in contractors to improve the real estate. Hard money loans are cash, so you can make a cash offer on properties that may need extensive renovations to come up to code. These hidden gem properties are the best for fix and flip investments, as traditional real estate investors may not have the available cash or resources to renovate and resell the property.
Improve Your Real Estate Investment Opportunities
Work with a reputable lender today to enjoy the financing you need for your latest investment project. Work with residential bridge loan lenders who offer reliable rates, fast payments and trustworthy contracts to get the most out of your newest investment property.