When flipping a house, your end goal is to make a comfortable profit, but sometimes things happen that are outside of your control. You will still need to plan for these things. That sometimes means having a different exit strategy than simply selling the house for a large profit quickly. If you aren’t guaranteed a profit, will you choose another route? Do you have alternate exit strategies planned?
Here are some things that could happen that could affect your plans to flip a house quickly at a profit:
- The economy could change.
- Financing rules could be changed.
- The market could shift.
- You might have overestimated your sales price.
- You might have underestimated your costs.
- Delays might have made the project take too long.
Do you have a plan for these potential events? Do you have alternate exit strategies for your home flip? Are you prepared to hold onto the property and rent it out if you need to instead of taking a loss? If your plans fall through will you be able to still make a profit in the long run? If you can’t see a means of a profit from any alternate exit strategies, your purchase might be too risky. If you can see multiple exit strategies though, you might have a good buy.
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.