Everything You Should Know About Fix and Flip financing

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• Fix and Flip
• Financing

2625 East 14 St. Suite 209 Brooklyn, NY, United
States 11235 info_at_expresscapitalfinancing.com
www.expresscapitalfinancing.com
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TOP FIX AND FLIP FINANCING OPTIONS
You can point the finger at HGTV, the turbulent
housing market, or the current trends in the
home design industrybut one thing is for
certain the popularity of house flipping is at
an all-time high. An exponential amount of savvy
real estate professional investors are
purchasing fixer-uppers with the intent of
flipping them over a short timeframe and
pocketing a substantial return on investment
when its all said and done. If you are also
considering hopping on to the appealing fix and
flip financing bandwagon, you are far from
along. Over ten per cent of all real estate
transactions in the past year consisted of fix
and flip projects. But what you may be wondering
is how do you go about financing these sort of
deals? Prior to the explosion of the flipping
trend, a significant percentage of homebuyers
were using out-of-pocket funds to pay for their
investment properties. Now, with more new
flippers eager to break into the market, more
and more potential flips are funded using
several different types of loan packages. Which
option is best for you? Below is a quick
overview of some of the most commonly used
funding approaches when it comes to projects.
fix and flip investment
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CASH Cold hard cash may sound somewhat archaic
or old-school but it still reigns supreme when
it comes to funding real estate deals. The only
problem is that many new investors simply do not
have the financial assets to do so. If you are
fortunate enough to have adequate cash, utilize
it before going into debt. House flippers in
debt are more likely to pull the trigger too
early when it comes to reselling, which may
negatively impact their return on
investment. Accordingly, if you have the
flexibility to save up for a few months prior to
purchasing your fixer-upper, do so. This will
ultimately put you in the drivers seat when it
comes time to resell your property allowing you
to wait if necessary for the market to reach
prime conditions. If youve accrued equity on
your primary residence, you can potentially fund
your flip with cash via cash-out refinancing.
This allows you to take out a portion of the
equity youve established and added it to your
standing mortgage. The subsequent cash-flow can
then be used to purchase or rehab a secondary
property.
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HARD MONEY LOANS Real estate investors are much
more likely to contemplate using alternative or
non-traditional funding options for their rehab
or flipping endeavors. If you are experiencing
difficulties obtaining approval for conventional
loans or would simply prefer a more
easily-accessible and flexible form of funding,
consider reaching out to a private money lender
such as Express Capital Financing.
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We dont require a crazy high credit score. We
are more interested in both your track-record as
an investor and the viability of your potential
fix and flip. Sound intriguing? Theres more. Our
loan packages can be closed in a fraction of the
time that it takes conventional lenders to get
you the money you need. This gives you a leg up
on the competition in what is fast becoming a
crowded marketplace. Having the peace-of-mind
knowing that you have the requisite funds to
submit an on-the-spot offer when you come across
the ideal propertyand doing so with the full
support of a collaborative and flexible lender
to coordinate the best loan that works for you,
whether it is through a form of bridge loan or
cash- out approachgoes a long way especially
when you are just getting established in this
challenging industry.
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Express Capital Financing is a nationwide hard
money lender that provides financing for a
variety of loan programs, including fix and flip
loans to real estate investors. If you are a new
or experienced investor, wed love to learn more
about your fix and flip deal to see how we can
work together.
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2625 East 14 St. Suite 209 Brooklyn, NY, United
States 11235 info_at_expresscapitalfinancing.com
www.expresscapitalfinancing.com