House flipping is a great way to start your real estate investing journey.
Many millionaires credit their success to real estate state, and the popularity of house flipping shows just how common of a practice it is.
While flipping for the first time may be intimidating, House Flipping can be Easy, especially with hard money.
Start house Flipping With GL&L Holdings Today!
Why Use Hard Money?
“Hard Money Loans make flipping easy. Hard money offers house flippers a way to purchase a property, make repairs, and sell quickly, all without credit. If you are looking to make a profit from flips, use hard money loans.” – Loren Howard, Prime Plus Mortgages – Arizona Hard Money Lender
Unlike other traditional loans, hard money loans are based on the after repair value of a property. That means that a hard money loan will cover the purchase, and repairs of your property.
These credit free loans are backed by the after repair value of a property, so the interest rates on hard money loans and the rate terms do differ from a traditional loan.
Interest Rates: Hard money loans have higher interest rates than standard mortgages, anywhere between 10-16%. Hard money loans are short term loans, between 12-124 months. Hard Money Loans can be easily re-financed.
House Flippers move quickly with their properties, so having short term loans is ideal!
Hard money loans are great for house flippers because they approve quickly (less than 12 hours!) and can fund within 24 hours!
Using a hard money loan means that you can have a hassle-free funding process that covers your entire flip!
Finding A Flip
Finding the perfect flip is no easy task.
No flip opportunity will be perfect right off the bat, but knowing what you need to make a profit will making finding your flip easier.
A Perfect Flip Will have the following:
- Good Neighborhood
- Great Location
- Small Number Of Large Repairs
A Good Neighborhood will be a great selling point for your flip and make future buyers feel safe. Look up the crime stats in your neighborhood, and see the school ratings and make sure it is a great neighborhood. We found that Zillow makes it easy!
Great Location offers easy accessibility and manageable commute times. No one wants to be stuck in traffic for hours. Make sure your flip has access to restaurants, fast food, grocery stores, gyms, and parks. This will make your flip even easier to sell!
Don’t pick properties that have a truckload of serious repairs. Foundational issues are a red flag, but a new roof is expected along with kitchen and bathroom upgrades. Do your homework and Know your ARV and budget your repairs accordingly.
One you have a flip in mind that fits these criteria, you can calculate your flip and budget for your Profit!
Calculating Your Flip
You will hear real estate investors throwing around the terms, ARV (After repair value) and ROI (return on interest).
Knowing these terms, and their value to your flip will help you set a budget, and also make more money!
Here are the formulas:
ARV = (Property Purchase Price) + (Value of Renovations)
ROI = (Rate of Investment) / (Cost Of the Investment)
Knowing the following will make it easy for you to know your cost point, and prioritize your house flipping efforts. Hard money lenders will also work with you to make sure that you make the most of your ARV and ROI and may even offer suggestions on how to profit!
Hard money lenders use this, along with current listing prices, to determine the true value of the property, and if the properties value will improve. You can find more house flipping tools here!
By combining the property price, and the value of the renovations you can estimate for your profit.
Finding A Hard Money Loan
Hard money loans make house flipping easy. In fact, many Hard money lenders will even offer tips on how to get the most value for your repairs.
The 3 most common types of hard money loans house flippers use are:
- Fix and Flip Loans cover the purchase of a property and helps fund repairs.
- Home Rehab Loans are perfect for upgrading properties, and cover repairs!
- Bridge loans are used to cover funding gaps in flips and are great for refinancing.
Finding Your hard money loan is easy! Most hard money loans are created with real estate in mind, so funding house flips is easier than ever!
If you are ready to apply for a hard money loan, make sure you have these 6 things:
- Property Address
- Purchase Price
- Loan Amount
- Photos of Property
- Property Plans
- A Flip Budget/Plan
With these in hand, you can use hard money to make the most of your flip.
Start flipping right away with hard money loans!
For those looking to start house flipping, hard money loans make it easy and fast to flipping today. Follow these steps to start house flipping now!
- Use Hard Money – Faster Funding with no credit checks holding you back.
- Find A Flip – Look for flips in great locations, that don’t have too many large repairs.
- Calculating Your Flip – Know your profit margins, and after repair, value to set your budget for flipping!
- Find A hard Money lender – Use a hard money lender to make a profit with your flip and get it funded fast!
Have You Ever Used hard Money Loans?
We fund hard money loans secured by residential and commercial real estate for business purposes.
Contact us for more information (832) 770-9415 firstname.lastname@example.org