House flipping isn’t really like it is on TV. To be a successful house flipper, you have to know how to do it right. Here are three things that successful house flippers do that are too boring for television and too important for you to not know.
- House flippers don’t buy houses at full retail price. What would be the point? If you pay full price and then make improvements, you’re not going to make much of a profit, if any. You need to purchase a house that is genuinely prices to sell. You have to find a home in which you can actually add value before selling for more than you spend in total. You’ll include the cost of taxes, repairs, incidental costs, your time, and the cost of the home itself. If you spend 500 hours on a home and only make a $20,000 profit, is it really worth it? If you’re relying on your renovation skills, you could have just gotten a job doing renovation and avoided all the personal liability and risk. Keeping your eye on probate sales or foreclosures is a good way to find deals.
- House flippers have access to cash. Traditional lenders will usually want about 25 percent down. That’s where we come in. We offer short-term loans based on the value of the property.
- House flippers make accurate estimates of total costs. When you’re considering costs, you must factor in the purchase price, financing charges, the cost to market it, the cost of all labor and supplies, the cost of any new tools you may need, and the cost of taxes, insurance, real estate commissions, etc. It can cost a lot of money to flip a house, and no one is going to donate a team of television stars to renovate your new home purchase, so you need to make sure your estimates are realistic.
Are You Looking for a Hard Money Loan to Flip a House Or Buy A Rental Property?
Paces Funding is a hard money lender offering hard money loans to purchase and renovate non-owner occupied residential and commercial properties throughout the Atlanta, Nashville, Florida, or the North and South Carolina metropolitan areas. Our application process for hard money loans is easy. Just fill out this very simple online form and you will be contacted shortly. Unlike other lenders, the window between applying and funding is very small. We have funded properties in as a little as one day, but typically funding hard money loans takes about seven to ten days.
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.