The concept of fix-and-flip programs is easy to understand. Find a property that is undervalued or in less than perfect condition. Make repairs or improve parts of the property that are depressing its value. Then, sell the property a short time later for a higher amount and pocket the rest as profit. The difficulty, as is so often the case, lies in the details.
Breaking Down the Details
A successful fix-and-flip program requires three key elements. First is the ability to evaluate homes and see beyond their current status and estimate their likely future value. Second is the ability to project an accurate estimate of the cost of the repairs or additions. A project with higher costs won’t likely generate enough profit. The third and often overlooked element is securing the financing to pay for the cost of the repairs and upgrades.
No matter what you see on HGTV, truly profitable fix-and-flip opportunities are not always easy to find. When you finally find a promising property, it is crucial to move quickly. Filling out an online application at the local bank is not going to cut it. It will take days, maybe even weeks, to get the loan approved and funded. Besides, if you want to diversify while increasing your opportunities for success, one loan tied to your residence will seriously constrain your possibilities.
Finding a Lender
Once you have the right real estate agent and the right construction contacts, you need the right financing partner. Every dollar you spend on financing is a dollar of profit lost, so you need flexible financing exactly when you need it with terms that make your deal profitable enough to go after. You need flexibility to secure a fix-and-flip loan without adding costs and reducing profits.
The fix-and-flip program at GenWealth Capital Commercial offers everything you need to finance your project. We lend based on the investment property, not your credit history or current financial situation. Our hard money loans let you close quickly, and not with a prequalification letter, but with a cash offer. Impress the seller with your all-cash offer and you won’t need 90 days to close. You might even shave a few thousand dollars off of that asking price.
Financing for Various Properties
Of course, loans are worthless if they can’t be used for your specific type of fix-and-flip project. Our fix-and-flip program doesn’t lock you into standard owner-occupied housing situations. We work with condos, townhomes, non-owner occupied 1-4 family real estate and even mixed-use properties, whether it’s a little fixer-upper or a full property rehab. We work with new as well as experienced investors. Our program can offer up to 90% loan to cost. This ensures that the purse strings are loose enough to get the job done right, and get it done quickly, all while having the capital to deal with the inevitable unexpected problems that pop up.
Our brokers have access to a wide-ranging network of investors. This allows us to offer loans nationwide under an equally wide-ranging set of circumstances. We can get you funding when others can’t. Instead of a constraining set of parameters to qualify for a fix-and-flip loan, we want to hear about your project. We’ll find the right investors, no matter how unique your situation is.
Apply for Your Fix-and-Flip Loan Today
GenWealth Capital Commercial is dedicated to building solid client relationships. We value education and transparency when working with our clients. We’ll work diligently to find you the best financing for your fix-and-flip project, making the process quick and seamless for you. Apply for your loan today, and reach out to our hard money lenders if you want to discuss your project.