Fix and Flip Loans for Your First, Second or Hundredth House Flipping Investment!
Fix and flip is really a slang term to describe a type of real estate investment deal. The fix part is where a real estate investor purchases an undesirable single family home below market value and does some repairs to the property in order to make it more appealing. The idea is to significantly increase the market value of the property with the minimal expense possible so that the home can be resold for profit, and that is the flip part.
Attom Data released some great research statistics for 2017 that shows how popular and profitable house flipping investing can be. There were over 200,000 house flips in 2017, and the average profit was over $68k!
Fix and flip investing has been around for quite some time, but it has become much more popular with the advent of TV shows such as Flip This House and Flip That House among others on cable stations. But house flipping is not as easy as those shows make it look. That is why working with a lender experienced in actual fix and flip investments is crucial. According to that same Attom study 12 % of house flips break even and over 28% fail, meaning a loss of money.
Do Hard Money was founded by an actual house flipping investor, who wanted to give other a chance to experience the success that he has. And there are a wide range of fix and flip loan options available. We can fund your fix and flip deal in 34 states and DC.
If you are interested in becoming an investor who needs fix and flip loans, then you have come to the right place! Read on to discover how you can get the money you need to flip properties regardless of your credit, job history or income. We can even offer 100% fix and flip financing on qualified deals!
What Are The Different Kinds of Fix and Flip Loans Available?
What If I Have Poor Credit?
Why does that matter?
In order to qualify for “traditional” financing to buy a property, a home must meet these guidelines. Otherwise a lender can’t write a loan through Fannie Mae or Freddy Mac. Which means that you can’t walk down to your local bank or call up Wells Fargo to have them fund your deals.
The majority of fix and flip loans are financed by private money or hard money lenders, but what separates the traditional from private?
Private lenders will loan money based on an asset. In this case, the asset is a piece of real estate. The good ones are people who are (or have been) real estate investors themselves, so they really understand what it takes to fix a property and sell it for a profit.
What private and hard money lenders will do is look at the property you want to invest in. They’ll ask you for your purchase price and what repairs you want to do as well. If they can see by the data that an investor can buy a house, do the repair work and quickly sell the home for a profit, they will fund the deal.
The lending decision is based entirely off of the aspects of the property – not the borrower. This means that you can get financed if you have bad credit or no credit. You don’t have to show job history or prove you have any income or assets. Private and hard money companies can do this because they use capital from private investors to fund fix and flip projects without having to abide by traditional mortgage guidelines.
Something you need to understand about a fix and flip loan is that it is usually for a very short term. Five to twelve months is common in the industry. Because the loan is short term, many lenders will not ask for payments during the term of your loan. However, you need to make sure you know what you are doing so that you can get the property sold and thus pay off your note. If you fail to do this, you will be foreclosed on and the hard money lender will take control of the property you were trying to flip.
Fix and Flip Hard Money Loan Terms
What Can I Expect?
Up to 100% Financing Available on Qualified Deals
You Can Obtain Up to 70% of the ARV
Minimum ARV of $70,000 but No Minimum Loan Amount
$250,000 Maximum Loans for New Investors
Maximum loan amount $250,000
Loan Lengths 5-12 months
More Favorable Terms for Experienced Investors
What Are the Numbers?
Interest Rates Start at 7.99%
Origination 2 to 6.5 pts.
No Monthly Payments on Certain Loans
No and Low Cash to Close Options Carry Higher Rates
Gap Financing Allowed
No Prepayment Penalty
How Will DoHardMoney Serve Me?
Full Disclosure at Time of Loan Offer
You’ll Be Protected by Our Proprietary Foreclosure Protection
Tools, Resources and Support Designed for New Investors Success
No Minimum Credit Score Required
We Allow Simultaneous Deals- No Need to Turn Down a Second or Third Great Deal!
Loans by State
Because of excellent market conditions and favorable laws, getting an REI hard money loan in the below states is most advantageous for both the real estate investor and the borrower:
*Enrollment in any educational system or purchase of any products does not guarantee funding or that 100% financing will be an available option for any property. Do Hard Money does not guarantee that each or any particular deal funded will result in profit.