Financing is one of the most important aspects of fixing and flipping houses, but here’s where many people get it wrong: They should be working with a hard money lender, but they’re not.
The two biggest myths on financing fix-and-flips is that you have to work through a bank or you have to use your own cash to buy the house. You could end up missing a great deal because you’re not able to pull together the cash in time.
Why a Hard Money Lender Might Be Right for Your Transaction
Typically, working with a hard money lender is much faster than it is working with a traditional lender. Hard money lenders can give you money based on a house’s after-repair value, or ARV, too (that means they’ll lend you money based on what the house is going to be worth once you’re done making repairs and improvements, not what it’s worth now; that can give you extra leeway when it comes to paying for those repairs and improvements).
Are You Looking for a Hard Money Loan to Buy a Property?
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.
Read our frequently asked questions and take a few minutes to learn about the hard money loan process.