About Fix and Flip Loans
Fix and flip loans are short term private money loans taken by real estate investors for the purpose of rehabbing or "flipping" a property to resell it. These types of loans are almost always secured by the property and may or may not include rehab costs. They tend to carry higher interest rates than traditional bank loans but are often used in hot real estate markets where investors must have ready access to cash in order to close transactions quickly. They are also integral for more sophisticated investors who undertake many flips at one time since banks will rarely loan money for more than a few concurrent projects. Investors who use hard money to flip properties must be highly diligent in managing their project timelines since the high rates of interest charged on the loans may end up consuming a bulk of their potential profits.
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