Whether you are looking to expand your investment portfolio or are new to the real estate investing business, a hard money lender, such as Lightspeed Lending can help you to finance your fix and flip project.
A fix and flip loan is an ideal way to finance renovations on your investment property, allowing you to turn around the property quickly for a sizeable profit.
The benefits of a fix and flip loan include:
Quick Approval Process
Loan approvals can be lengthy and stressful. Hard money lenders, also known as private lenders, make the process of obtaining a fix and flip loan easy. Rather than waiting for months for conventional bank financing, a private lender can get your loan approved within days.
With less stringent regulation, you don’t have to provide extensive amounts of documentation to get approved for a fix and flip loan.
Fund Many Property Types
As mentioned above, fix and flip loans can be used to finance many property types, in varying states of condition. If you were seeking a bank loan instead, you may struggle to obtain the required finance, as banks are generally more risk-averse than private lenders.
Renovation Costs Covered
When flipping houses, a significant amount of your budget is spent on construction costs and renovations. With a fix and flip loan, a proportion of your loan amount is set aside to cover all the repairs needed on the property. This takes the headache out of trying to source more money to cover these costs.
Fix and flip loans and construction loans are both popular options offered by hard money lenders. So, what is the difference between these two bridge loans?
Fix and flip loans are short-term financing options, designed specifically to support house flipping. If construction and renovation are required for the purposes of house flipping, this will normally be funded through a fix and loan