There are many things you can do in order to improve your upcoming fix and flip property. Now that the weather is warming up, there is no better time to start thinking of outdoor improvements that can help not only add curb appeal but help turn your back yard into a dream oasis for buyers.

If you are looking for outdoor improvements that can help transform your property, increase its value, and get the attention of buyers—here are some great outdoor improvements that are perfect for your investment property.

1. Update the Front Door and Garage Door- Curb appeal is important and you want to make sure that you make a great first impression. Swapping out the garage door or front door are affordable projects that will give your property that extra appeal.
2. Add Some Plants- Planting a few flowers here and there can go a long way in both improving the front and back of the home.
3. Sod or Plant Grass Seeds- Make sure that you put a lot of grass in the backyard to create some usable space. Sod is expensive, but sometimes necessary. If you are able to plant grass seed, make sure to time it out so that it is growing by the time you start showing the house.
4. Fence in the Yard- Privacy is a really big deal for people with back yards where they butt up to their neighbors’ yards. If you want to define your space, and add some privacy that makes the yard seem more private, invest in a fence. You can look for privacy fences that aren’t as expensive as some of the more ornate wrought-iron ones and add a lot of appeal to the space.
5. Add a Deck- If you have a good contractor and don’t overdo it with the materials, you can add a deck in your outdoor space for relatively affordable amount. They have a high ROI. Just make sure that the deck is done right so it passes the inspection.
6. Paint the Exterior of the Home- A fresh coat of paint on the home’s exterior can really transform a space, and it is way cheaper than replacing siding. Keep paint colors classic and fresh, not too trendy.
7. Stage the Outdoor Area For Fun- Think about how you envision your backyard being used at this home. String lights a staged grill, some outdoor furniture or even a fire pit can all show potential buyers how they can use the outdoor space. This is particularly important if you are trying to sell a home with a smaller back yard. Buyers love having a great outdoor space to enjoy, so pay close attention to the yard, with these easy fixes that will add a lot of value to your property.

Fix and flip properties are becoming a very popular investment for people who want to take a little bit of a gamble, and hopefully make a lot of money in the process. However, fix and flips are much more complicated than they first appear. You need to renovate the property in order to get top dollar, but there is also such a thing as over-renovating. You need to make sure that you are only spending money on upgrades that actually add value.

Remember, your goal is to spend as little money as possible to make as much money as possible. Here are a few ways to make sure you that you are adding value to your fix and flip.

1. Remember the golden rule. There are three things that determine the value of real estate: location, location and location. This has always been the rule and will always be the rule. If you buy in a good location, for a low price, you are already ahead of the curve, no matter what improvements you make. There is no better “value add” than a great location.
2. Keep the comps in mind. It is really easy to over improve a property. You may spend all this money for higher end upgrades and end up with a home that is pretty, but overpriced given the neighborhood. This is not adding value, this is just spending money.
3. Don’t limit your buyers. There are plenty of ways you can spend money in a home to add things, but in the meantime you may end up cutting out some of your potential buyers. If you really want to add value to the property, you need to make it appealing to as many people as possible. So, don’t be buyer specific with what you add.
4. Make a strong first impression. Curb appeal is huge and it is worth spending money on the exterior of the home in order to have better curb appeal. Paint the front door a bright color and plant flowers and plants outdoors. Upgrade the exterior lighting and consider a new mailbox. However, this isn’t the only first impression. The interior of the home needs to make a strong first impression as well, so spend a little extra really sprucing up the entry way to give buyers a great first impression of the home.
5. Kitchens and bathrooms sell houses. If there is anywhere in the home that you are going to spend money, it should be the kitchen or the bathroom. These are the two areas in the home that are going to be worth spending money in. They may be a lot of money up front, but they have a great return on investment.

Keep these tips in mind as you start to renovate your fix and flip and remember that you goal is always to add value with every dollar that you spend.

Autumn is right around the corner and as most real estate investors know, the fall is one of the biggest times of year for buying and selling homes. If you are looking to invest in a property in hopes of fixing and flipping that home, then you need to be aware of some of the biggest trends that are going on in the fix and flip industry. If you are looking to make money in 2018, here are some of the biggest trends that you should keep in mind.

Location Still Reigns Supreme

The old adage location, location, location still applies, so make sure to remember this with your fix and flip investments. This is still the one thing that you absolutely can’t change about a home. There are a few big things to remember about location in fix and flip homes. Walkability is a big factor with location, particularly with millennial buyers, so walkable locations are always going to sell. School districts are still another important factor, as is safety, in 2018 when it comes to scouting locations.

Flexible Spaces

When you are fixing up and flipping a home, it is important to remember that your home is supposed to appeal to a number of different buyers, not just you and not just one type of buyer. Consider making spaces that can be flexible and used for a variety of purposes, such as a multi-purpose rec room/office space/dining room/playroom instead of just being a space that is supposed to be a formal living room.

Open Concept

The open concept trend is one that isn’t going away any time soon. People are loving the idea of open concept homes, especially when they like to entertain, or if they have small children they want to keep an eye on at all times. This is another way to bring flexibility to your space.

Light Colored Floors

This is a new trend that is making its way to the real estate market. While dark floors had their moment, right now, light, bright and airy floors that really make smaller spaces look bigger. So, when it is time to pick your flooring options for your new homes. So, when it comes to finding new floors for your fix and flip, remember that neutral, light-colored floors are a great option right now.

Mixed Metals

It used to be all about keeping everything matchy-matchy, but right now, mixed metals are making a comeback. Adding different metals in the kitchen, with hardware, with light fixtures and other elements in the home is a great way to bring a sense of modern style to the space and add design features that really help your property pop. The best part is that many of these features can easily be changed if the buyer doesn’t love them, so they don’t have to commit to the trend of they don’t want to.

Keep all of these tips in mind if you are looking to have a fix and flip property in 2018. These are the types of trends that can help your property sell quick as you make certain you are making a smart investment with this exciting new venture.

A pretty african american business woman at her company

Considering investing in a fix and flip property? This can be a great project and an exciting investment that can help you make money in the process. However, the biggest question that people tend to have about fix and flip investments is how exactly to pay for the initial home investment. While most people would love to be able to pay cash for their loan, the average person simply does not have that much in their account. The good news is there are a number of different lending products out there that can help you finance these flips and get that initial money you need to get your investment off the ground.

However, before you apply for a loan, such as a hard money loan, there are a few things that you should do to help with the process and to make sure everything goes smoothly. Here are our biggest tips to preparing for your fix and flip loan.

1. Make a Business Plan for Your Flip. It seems like these days everyone is looking to get into the fix and flip market. In order to show lenders that you are serious, you need to create a business plan. THs information will not only help lenders take you seriously, but help you make sure that you get a loan that will help you cover your costs. This should include some basic information on the property, such as:
   1. The location
   2. An analysis of the neighborhood and comps for the area
   3. Your strategy and timeline for the project, including the “scope of work” and financials
   4. Background information on the team who will be helping you with the project
   5. Back up plans in case your renovation doesn’t go as it is supposed to
   6. Current value of the property from an appraiser

2. Get An Accurate Estimate for Renovations. Obviously one of the biggest expenses involved with a fix and flip is the actual flipping part. Renovations can be as much or even more than the initial property investment, so you need to have an accurate assumption of how much they are going to cost, so you can get enough to cover these expenses. Remember, it is always best to overestimate instead of underestimate on these expenses so you don’t end up in over your head. It’s always best to have a pro on your side to help you with these types of estimations

3. Know Your LTVs and ARVs. Before you head into talk dollars and cents with a lender, it is important that you know your LTVs and your ARVs. A LTV is a comparison of your loan size to the value of the property. Typically, the absolute maximum LTV on a fix and flip loan is 90%, but most products are much less. This means, you will need to provide the remaining amount in cash as a down payment. The ARV on the other hand is the appraiser’s estimate of property’s value after the renovations are done. There are many lenders who will quote your loan based on the ARV.

Keep these tips in mind if you are considering a fix and flip loan. Being prepared when you apply for your loan can only help expedite the process and make certain that everything goes smoothly so you can make this exciting new investment opportunity a reality.

If you have decided to invest in a fix and flip property, this can be a great investment for you and a great way to make some serious money. There are so many people today who have found success in this fix and flip market and who have been able to make money off of rehabbing these properties. Just look at popular television shows and you will see countless shows that are all about the individuals who are able to flip money for some major returns.

So, what exactly is their secret? Well the people that are able to make a lot of money off of these properties know some insider tips that can help them stand out from the crowd. Here are a few secrets to making your fix and flip a success.

1. You need to buy the home at the right price. Finding the right fix and flip property isn’t as easy as it seems. You need to buy the initial home at the right price. Look at comps, set a budget and stick to that budget. If you buy for too much right away don’t expect to just make up for it with lower renovation costs—that never works out.
2. You need to have cash on hand. The best way to get a good loan on a fix and flip property is to have some cash on hand for your first investment. You don’t need 100% cash to invest, but you will need to have some on hand.
3. Consult a professional for estimates. You may think you know how much renovations cost, but if you aren’t a professional contractor, chances are you may be wrong. You always need to consult a professional for renovation estimates. Underestimating the cost of renovations is the number one reason that people fail to turn a profit on their fix and flips.
4. Hire a good contractor. You need to find a reliable contractor to do the work for you. Ask for references, look at their past work and talk to them about their experiences with whole home flips. You want someone who knows what they are doing more than just finding the cheapest contractor.
5. Buy in the right area. It is essential that you do your research on the neighborhood you are buying in. You want to find an up and coming neighborhood that is safe and where homes are selling fast. This can allow you to buy for cheap and sell for more. Another good rule of thumb is to look for neighborhoods where flips are already popular.
6. The don’t over-do it. Once you get into fixing up a flip, it can be easy to go all out and start adding new and more expensive improvements. Don’t assume that just because you spend money on a renovation that you are going to get that money back. Know what homes in your area are selling for and stick to your budget. Not everyone wants, needs or can afford marble countertops.

Not everyone who invests in fix and flip properties is able to turn a profit. However, if you keep these insider secrets in mind, you have a much higher chance of making your fix and flip investment a profitable one.

If you are planning on  making a fix and flip investment, then one of the best things that you can do is to make sure you know a few insider secrets on what tends to make these investments a success. However, in addition to knowing the secrets on what to do, you also need to know what not to do when investing in one of these properties. The good news is, people have been fixing and flipping homes for some time now, meaning you can easily learn from their mistakes and avoid these mistakes when it is your turn.

1. They don’t have enough money. Chances are, your fix and flip investment is going to be more expensive than you think. It is best to have too much money instead of not enough. You need to prepare for extra fees and for paying more in renovations than you originally planned.
2. They only consider traditional mortgages. Sure, you can invest in a fix and flip using a traditional mortgage, but that isn’t always the best option and it isn’t always your only option. Instead of just considering a traditional mortgage, look into other lending options like hard money loans. Limiting your potential funding options is an easy mistake to avoid.
3. They don’t plan for enough time. There are so many new investors that run the numbers and find they can make say $5,000 on their fix and flip property. This may sound like a great investment at first, but you need to think about how much time it will really take. One of the biggest mistakes that new investors tend to make is that they don’t give themselves enough time on their fix and flip. Most flips won’t be done in a matter of weeks. You need to think if that $5,000 profit will really be worth it if the flip takes 6 months.
4. They don’t have the skills. If you aren’t a professional carpenter, contractor or plumber, chances are you don’t have the skills to make a fix and flip investment. Even if you are “handy” don’t assume you have what it takes to do the work on your own—you need a professional.
5. They don’t know the neighborhood. Don’t invest in an area that you aren’t familiar with. You can think it looks promising or like the house seems like a good deal, but if you don’t know the neighborhood then you really don’t know anything.
6. They are too trigger happy. If you are ready to invest in your first fix and flip, you need to be patient. So many first time investors get so excited that they don’t wait for the right property and they try to force a project that simply isn’t there. Take your time, it will be worth it in the end.

The more you know ahead of time when it comes to making your fix and flip investment, the better. You can never be too prepared to make a significant investment like this. Keep these tips in mind and you can make certain that your flip doesn’t turn into a flop.

Fixing and flipping homes can be a great way to put some extra money in the bank. However, as any real estate investor will tell you, the key to making flips work is selling the property fast. This is especially true when dealing with convenient hard money loans that are designed to be short-term. The quicker you sell a flipped home, the less interest, overhead and monthly payments you will need to make, and the faster you will be able to take your profits from that flip and invest them in another property.

Time is always of the essence when it comes to selling fix-and-flips, so here area few tips to help make sure that your property sells fast.

1. Know Your Potential Buyer And ALWAYS Keep Their Interest At Heart
Before you ever start flipping your home, you need to know who your potential buyer is. Have a clear idea of who the target market in your neighborhood is and what type of person will likely be buying your home. Is it a single individual? An established family? Someone looking for their starter home? Then, every decision you make from the layout to the finishes needs to be made with that particular buyer in mind. It doesn’t matter if it isn’t what you would want, it only matters what the potential buyer is and what they are going to want or expect from this property.

2. Choose An Experienced Real Estate Agent as A Partner
The right agent can be an essential component in you selling your flipped home fast. Make sure that you find an agent that not only has proven experience, but one that knows the specific area that you are selling in as well. They will not only be able to help you market the home to the buyers that frequent the area but they will also be able to help you determine which rehab upgrades are going to attract the right type of buyer in the community that you are selling in.

3. Choose the Right Price
This is one of the areas that many new fix-and-flip investors struggle with. Coming up with the right price point can be extremely difficult. After all, once you put all of the work into flipping a house, you are going to want the best return-on-investment possible. However, no matter how much money you think you should make for your work, you need to instead make sure that you are choosing a price that is competitive with your neighborhood. Otherwise, your property is at risk for becoming a stale listing and won’t sell. Plus, remember, the faster a home sells, the more profit you are likely going to receive.

4. Staging, Staging, Staging
Staging does cost money, but it is one last final expense that can really help your home sell fast. The right staging not only highlights the best features of your newly renovated home, but it can help buyers envision what it is going to be like living there.

Keep these tips in mind when you get ready to sell your next fix-and-flip and remember that the faster you can sell your property, the faster you can start seeing those profits.

If you are interested in getting in to the fix and flip industry and excited about the potential income that investing in this property can bring, you will quickly find out there is a lot to learn. While so much of finding success is about trial and error and learning as you go—it doesn’t mean there aren’t some major pitfalls to be aware of first.

Here are six of the most common pitfalls that you should avoid when getting in to the fix and flip property—they can end up saving you a great deal of headache and a great deal of money.

• You Don’t Know What You’re Doing- Watching a lot of HGTV doesn’t make you the idea candidate to take on a fix and flip. If you aren’t an actual contractor, chances are you don’t have the experience necessary to handle this type of project—so make sure to get a pro on your team from the start.
• Over-Improving The Property- You need to know your comps before you even buy a property in question. There are so many eager first-time investors who will over-do it when it comes to home renovations and ultimately create a property that is too expensive for the area and won’t sell. Just because you can make a high-end improvement, doesn’t always mean you need to.
• Creating the Home YOU Want to Live In- The key to a successful fix and flip is making a property that appeals to a lot of buyers. Just because you love the color purple, it doesn’t mean that everyone else is going to want purple tile in their bathroom. Keep things neutral, flexible and appealing to all types of buyers.
• Not Screening Contractors- The biggest horror stories you will hear from any new investor always have to do with bad contractors. Take the time to really screen the contractors you bring in to you home so that you don’t end up with someone that does more damage to your house than good.
• Overpaying for a Property- When it comes to buying a fix and flip property, you need to take emotions out of the equation. There is nothing that will get you to overspend on a property like being emotionally attached to it. Set a budget and if the house goes over that budget, you need to be able to walk away.
• Under-Improving the Property- We’ve already talked about sticking to your bottom line and not going over budget with repairs or investments. However, there are many new fixers and flippers that take the opposite route and ultimately under-improve. Don’t cut corners, don’t leave areas unfinished or available for people to “renovate later.” Those interested in buying fix and flip properties want a finished product not a project for down the line.

Get yourself started off on the right foot with your upcoming fix and flip endeavor by keeping these common pitfalls in mind. The more you can do to avoid these potential setbacks, the better off you will be.

Regardless of the type of investor you are and your loan scenario, there is an array of loan
programs that are designed to meet all your mortgage needs.

Hard Money and Fix & Flip Loans are among the most popular programs that investors utilize
for their real estate investments. Although they are two different programs, many inside and
outside the industry believe them to be the same loan…but this is the furthest thing from the
truth.

Hard Money Loans

A true Hard Money Loan is an asset-based loan, which means the financing is based on the
Loan to Value (LTV) of the Asset. Unlike the Fix and Flip loan, it doesn’t go through full
underwriting and there’s no minimum FICO requirement for the borrower, as it doesn’t have
many guidelines and criteria.

This type of loan doesn’t have as many restrictions as one might think considering that it’s just
money, so no more having to worry about bankruptcies, foreclosures, collections, etc.
Due to the lack of guidelines and underwriting, a true Hard Money Loan is generally capped at
65% LTV or less. For example, let’s say you have a home worth $1M, if you want $500K against
it (50% LTV), you’re able to receive the money within 1-2 weeks (from day of application),
commonly as a first lean position – because it’s just money. It’s normally in the form of a Bridge
Loan, which is short term financing in a period of 12-24 months.

One of the reasons why Hard Money Loans are for investment properties ONLY, is due to the
high cost regulations and predatory lending – you can’t put such high interest rates and cost on
an owner occupied property.

In certain states, there are non-judicial foreclosure laws, which allow a Hard Money lender to
get their money back quickly if the borrow defaults on the mortgage.

These foreclosure laws make the lender more comfortable doing high-risk loans, usually the
money is not sold on the secondary market – the lender holds the note, they don’t sell the
paper.

Fix & Flip Loans

Fix & Flip Loans are also asset-based loans, however they utilize more underwriting guidelines
and criteria. While Hard Money Loans focus solely on the asset, Fix & Flip loans look at both the
asset and the borrower.

The reason why people confuse Hard Money Loans with Fix & Flip Loans, are because both the
loan and the laws are very similar – they are both private money to an investment property.
Virtually all fix & flip and hard money loans are funded by hedge funds, the money comes from
the same place, but the underwriting is different.

Contrary to Hard Money Loans, Fix & Flip Loans are usually sold on the secondary market and
goes through a full underwriting with tighter guidelines. For instance, depending on the lender,
Fix & Flip loans have a minimum FICO requirement. Additionally, the borrower can’t have late
payments, foreclosure, judgments, or bankruptcy on their credit for 24-36 months.

Furthermore, a Fix & Flip loan is a rehab loan, a loan that you utilize to acquire a property and
then receive the funds to rehab that property in short term financing (12-18 months).
Depending on whom you are working with, it’s important to bring something dynamic to the
table, to help you close your loans quickly, efficiently, and professionally.

However, make sure that when you move forward with a mortgage lender that you know all
the details of your loan, why they are utilizing that program, and whether or not that loan
program is being properly presented to suit your needs.

Written by New Jersey based Mortgage Expert, Michael Mikhail, CEO of Stratton Equities.

March 15, 2024

As we step into 2024, the landscape of the hard money lending industry is poised for significant shifts and transformations. With the ever-evolving economic climate, technological advancements, and changing consumer behaviors, it’s crucial to explore the potential trajectory of this sector in the coming year. Here, we delve into the key trends and insights that are likely to shape the future of hard money lending in 2024.

1. Increased Digitization and Automation: The trend towards digitization and automation is expected to accelerate in the hard money lending industry. Lenders will increasingly adopt advanced technology solutions such as AI-driven underwriting processes, blockchain-based smart contracts, and online platforms for loan applications and approvals. This digital transformation will streamline operations, enhance efficiency, and improve the overall borrower experience.
2. Focus on Risk Management: With economic uncertainties and market fluctuations, risk management will remain a top priority for hard money lenders in 2024. Lenders will implement more robust risk assessment methodologies, leveraging data analytics and predictive modeling to evaluate borrower creditworthiness and property valuations accurately. Additionally, there will be an increased emphasis on diversification of loan portfolios to mitigate potential risks and ensure sustainable growth.
3. Expansion of Alternative Lending Products: The demand for alternative lending products, such as fix-and-flip loans, bridge financing, and construction loans, will continue to grow in 2024. Hard money lenders will expand their product offerings to cater to diverse borrower needs and capitalize on emerging market opportunities. Moreover, innovative financing solutions tailored to specific niches, such as real estate crowdfunding and peer-to-peer lending platforms, may gain traction in the industry.
4. Integration of ESG Principles: Environmental, Social, and Governance (ESG) considerations will play an increasingly significant role in shaping the lending practices of hard money lenders. There will be a growing focus on sustainable and socially responsible lending practices, with lenders incorporating ESG criteria into their underwriting processes and investment decisions. This shift towards ESG integration reflects the industry’s commitment to promoting positive environmental and social impact while delivering financial returns.
5. Regulatory Compliance and Transparency: Regulatory compliance will remain a key area of focus for hard money lenders in 2024, as the regulatory landscape continues to evolve. Lenders will need to navigate complex regulatory frameworks and ensure compliance with applicable laws and regulations governing lending practices. Moreover, there will be an increased emphasis on transparency and disclosure, with lenders providing clear and comprehensive information to borrowers regarding loan terms, fees, and potential risks.
6. Collaboration and Partnerships: Collaboration and partnerships between hard money lenders, real estate investors, and other industry stakeholders will be crucial for driving innovation and growth in 2024. Lenders may forge strategic alliances with technology providers, financial institutions, and real estate professionals to enhance their service offerings, expand market reach, and access new sources of capital. Additionally, cross-sector collaborations may facilitate knowledge-sharing and best practices adoption across the industry.

In conclusion, the hard money lending industry is poised for continued evolution and adaptation in 2024. By embracing digital transformation, prioritizing risk management, expanding product offerings, integrating ESG principles, ensuring regulatory compliance, and fostering collaboration, hard money lenders can navigate the challenges and seize the opportunities that lie ahead in the dynamic landscape of real estate finance.