Finance Your Flip with an Idaho Easy Qualify Hard Money Loan
House flipping is trending in real estate again.
Fix and flips historically eb and flow in popularity as a real estate investment strategy. But in today’s hot market, where housing prices continue to rise and return on investment seems a sure thing, flipping has its appeal.
While the timing may be opportune, house flipping is not for the faint of heart. To be successful, investors have to be willing to take risk, move fast and work hard.
If you’re a first-time house flipper, follow these best fix and flip practices for a profitable investment experience.
First Time House Flipper Tips
- Do your homework: Research everything you can find about the process of flipping houses, then research some more, from financing to renovation to closing. Talk to the experts and be sure to have a fully informed understanding of every step.
- Build your team: Your flip will be only as good as the people you have around you. Gather the team you’ll consult and work with throughout the process: your financial, real estate and legal support; your design, construction and renovation crew; your property management people.
- Study the market: Know your local real estate scene. The better you understand neighborhoods and ratings, local demographics, hot listing spots, permitting laws and requirements related to real estate, the better informed a purchase you’ll make.
- Have a budget: House flipping requires money, and renovations always cost more than anticipated. Set a budget – and have a buffer. Then use the 70:30 rule: pay no more than 70% of the ARV (after repair value) minus renovation costs for your fix and flip.
- Make a plan: As a first-time flipper, it’s particularly important to have a written business plan in place that includes the following: your goals, a market analysis, timeframe, budget, funding sources and exit strategy. A clear, detailed plan you can refer to will help guarantee success.
- Understand fix up values: Successful flipping isn’t just about finding the right property it’s about knowing what to fix. Have a clear understanding about which upgrades and repairs will bring the greatest ROI – and be sure of what you can afford.
- Have an out: The goal of every fix and flip is to sell fast and make a quick profit. Challenges do come up, however. If a renovation is taking longer or is costing more than anticipated, the market suddenly softens, or other issues arise, have an exit strategy in place.
Hard Money Loans are a Great Fit for House Flippers
When it comes to financing a fix and flip, hard money loans are a great option. Unlike traditional lenders who require extensive applications, paperwork and credit checks, hard money loans are easy qualify and hassle-free. Gregory M. Russell lends to successful real estate investors throughout Idaho, providing streamlined lending services. Our loans are based on your available equity; your credit and employment history are secondary, and you can have cash in hand for your flip within ten days. Call to learn more (1-888-477-0444); we’re here to help. Or complete our simple online loan request form today. Make us part of your fix and flip team!