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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It may seem obvious, but nobody just googles the term "hard money loan" and gets the money they need for a home or remodel. There is a process to follow, as with any loan. The fact that hard money loans are faster and require less paperwork than a standard mortgage from big banks does not mean that...Read More
Many property buyers look for alternatives to the big bank loan process that can take a long time to fund and often require excessive paperwork. There are many different types of special financing available. This is a short overview of some of the options US buyers have today. Hard money refers to...Read More
Anytime a borrower seeks out alternative or special financing, like a hard money loan, it is extremely important to do the homework. Everyone considering a hard money loan should know what to expect, how to evaluate the options presented and what kinds of documentation will be expected at closing. ...Read More