Fix-and-flip loan money is crucial to your real estate investing business. It spurs you on your way towards building a life of financial freedom through real estate investing.
There’s lots of talk these days about making tons of money in real estate. There is truth to this talk. So before you read any further, know that investing in real estate has made more millionaires on the planet than any other kind of legal endeavor known to man. So if you’re here, then you’re a person interested in flipping houses for profit. I’ll tell you right now, this is a good place to start building your real estate empire. Next let’s investigate more about fix-and-flip loan endeavors.
Three Methods To Use Fix-and-Flip Loan Funds
There are three different methods to real estate investing that we’ll cover here. Each one provides a different approach. Get yourself familiar with all three. Next choose the best one for you. Or you can use a combination of all three. The combination approach can be very productive. It gives you the flexibility to apply any one of the three methods by deciding which one is best for each individual situation. So let’s get into the three methods.
The first method to consider is the retailing method. So what you do here is find a property that needs repairs. You purchase the property at a price below what it will sell for when repaired plus the cost of repairs. Then you go through the process of acquiring fix-and-flip money for your project. You then make the repairs to the property. Once completed you then sell the property at a profit. You will most probably need a fix-and-flip loan.
To purchase and repair the property. You must make sure your calculations on the fix-and-flip loan n The selling price must be more than what you paid for the property combined with all of what you needed to repair it. This is where fix-and-flip money come into play. Your profit is what is left over after you pay back the loan. Most people do not want to use their own money for all of this.
They instead borrow the money to buy the house and make the repairs. A lender will charge fees and interest to loan the fix and flip money. The sales price of the house must cover these costs as well before an investor shows any profit. This method is nick-named ‘fix-and-flip’.
The Second and Third Methods May Or May Not Require A Fix-and-Flip Loan
The second method is wholesaling. It begins the same way as the first method. First find a home to buy that needs repairs for sale at a price that supports a profit to you in the end. In this case after buying the home, instead of making the repairs yourself, you sell the home ‘as is’ to another investor who in turn makes the repairs.
This method has a much faster turn-around time, if you are wholesaling the property. It usually has a smaller profit margin because there’s less work involved. Wholesaling profits are usually smaller than retailing due to less work. The good news is you’ll have the time to do many more deals than with flipping. In this case most often a fix-an-flip loan is not needed. This method works especially well in largely populated areas where there are lots of homes.
The third way to invest in real estate that we will discuss here is buying real property and renting it to tenants. This is not a fix-and-flip loan situation, per say. But I include it here, because you may well choose to make this kind of investment as well as fix-and-flip types. Depending upon how long you plan to keep the property, the same lender who gives you a fix-and-flip loan may loan you money for this longer term property investment as well.
Many people who choose this method hire property managers to maintain a relationship with tenants for them. For a fee these managers will supervise making minor repairs, screening prospective tenants and collecting rents. If you prefer, you can do all of these tasks yourself. This investment method is referred to in the industry as ‘buy-and-hold’. You may have already accomplished all of this and are ready for a fix-and-flip loan. Or you may be ready for a buy-and-hold loan. If so then by all means click the link to discuss your lending needs. Contact us here.
You Can Be Successful At Getting Fix and Flip Loan Money For Houses
As a real estate investor you can use any one of these methods to successfully make money in the fix-and-flip marketplace. Fix-and-flip loan money is critical to these types of projects. Most people do not have the thousands of dollars usually required to purchase and repair these properties. Thus the need for fix-and-flip loan money. None of these methods is a walk in the park. There is much to learn and many pitfalls to avoid. Any one of them will take work on your part, so don’t think real estate investing produces wealth like apples falling from a tree.
Flipping houses is a very profitable way to engage in real estate investing. Getting the fix-and-flip loan that is right for your property is paramount. Make sure whichever method you choose, you begin with the basics. Begin making connections for your fix-and-flip loan. What we recommend are two manuals to help you on your quest to become a successful real estate investor. There are more ways to make money as a real estate investor. The two manuals go into much greater detail than we can here on these and other methods besides flipping houses that you may be interested in.
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