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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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What is a Deed of Trust?

A deed of trust, also called a trust deed, is a document that represents a real estate purchase where there is a loan involved. Many people who have a deed of trust simply refer to it as their mortgage or their home loan. But having a deed of trust is technically a little bit different from that. ...

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5 Steps in Obtaining a Hard Money Loan

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...

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Documents in a Hard Money Loan

While hard money loans are known for funding faster than more traditional mortgage loans and they often require much less paperwork, there is still some paperwork and there will be a closing. It's a good idea to prepare, going in with an understanding of what will happen and what kinds of documents...

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