Real estate flipping is about making money, not losing money, right?
Right.
So, humor me for a minute, and tell me if the following story makes sense to you.
A Story About Real Estate Flipping
(Trust Me, It Really Is)
One day you’re sitting at home doing what you normally do: surfing real estate statistics on the web, crunching numbers on your current deal, juggling pineapples, whatever.
You get a *knock* on your front door — it’s your next door neighbors asking to borrow 3 cups of sugar.
Your neighbors explain that they’re in the process of baking some amazing apple pie egg rolls (yeah, those are a thing).
They’re investing a lot of their own ingredients into the project. The return on their investment is going to be BIG, and all they need to finish the job is to borrow some sugar from you which they will repay you for when the baking is all done in about an hour.
They’re even going to give you a couple of egg rolls for helping them out.
You then reply to this mutually-beneficial deal by saying, “Sure, I’ll lend you the 3 cups of sugar!
. . . BUT, under one condition. While you are are hard at work baking those apple pie egg rolls for us, you have to come back to me every 15 minutes and give me 2 Tablespoons of sugar until you’re done baking. Then I’ll also take my two egg rolls for lending you the sugar.”
Your confused neighbors try to explain that the whole reason they knocked your door in the first place was because they needed sugar and that they’ll be 1/2 cup short to even finish the job if they have to give up 2 Tablespoons every 15 minutes.
“Too bad!“, you say. “Those are my terms, and I’m sticking to’em.”
Some Hard Money Lenders Are Like Bad Neighbors
My little story is obviously a comparison about getting loans for real estate flipping deals.
As ridiculous as it sounds, this is exactly what some hard money lenders do to real estate investors who come to them for help. They do it by requiring loan payments before the fix and flip is complete.
Requiring loan payments before the fix and flip is complete is standard practice by other lenders in the industry.
I know from my own experience flipping homes that the last thing REIs need in the middle of a flip is money leaking out of the loan that they got because they needed money in the first place.
The Investor's Edge Loans for Real Estate Flipping
You guessed it. I put my money where my convictions are.
Investors who choose DoHardMoney for their real estate flipping deals don’t make loan payments until the fix and flip is done.
We do this because we understand the house flipping process and, more than anything, we want to help ensure the success of the investors who partner with us.
To make this possible, we hold your loan payments in escrow to give you piece of mind during the rehab process and to make sure you have all the funds you need for repairs and other expenses. Then, and only after you’ve sold the investment property for a profit, you can easily make the payments back.
See how it all works by attending our next webinar.
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